Is a Churchs Chicken franchisee required to conduct an independent investigation of the business contemplated by the agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee represents, acknowledges and warrants to Cajun (and Franchisee agrees that these representations, acknowledgments and warranties shall survive termination of this Agreement) that:
A. This Agreement involves significant legal and business rights and risks. Cajun does not guarantee Franchisee's success. Franchisee has read this Agreement in its entirety, conducted an independent investigation of the business contemplated by this Agreement, has been thoroughly advised with regard to the terms and conditions of this Agreement by legal counsel or other advisors of Franchisee's choosing, recognizes that the nature of the business conducted by Church's Restaurants may change over time, has had ample opportunity to investigate all representations made by or on behalf of Cajun, and has had ample opportunity to consult with current and former franchisees of Cajun. The prospect for success of the business undertaken by Franchisee is speculative and depends to a material extent upon Franchisee's personal commitment, capability and direct involvement in the day-to-day management of the business.
- B. Cajun assumes no liability or responsibility for: (1) evaluation of the Franchised Location's soil for hazardous substances; (2) inspection of any structure on the Franchised Location for asbestos or other toxic or hazardous materials; (3) compliance with the Americans with Disabilities Act or similar state laws ("ADA"); or (4) compliance with any other law.
It is Franchisee's sole responsibility to obtain satisfactory evidence and/or assurances that each Franchised Location (and any structures thereon) is free from environmental contamination and in compliance with the requirements of ADA.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees represent that they have conducted an independent investigation of the business contemplated by the Franchise Agreement. This representation is a warranty to Cajun, Churchs Chicken's parent company, and it survives the termination of the agreement. The franchisee also acknowledges that the agreement involves significant legal and business rights and risks, and that Churchs Chicken does not guarantee the franchisee's success.
This means that Churchs Chicken franchisees are expected to take responsibility for understanding the business and its potential risks before entering into the agreement. Franchisees should not rely solely on information provided by Churchs Chicken and should seek advice from legal counsel or other advisors. The franchisee also acknowledges that the nature of the business conducted by Churchs Restaurants may change over time.
Furthermore, the franchisee must have ample opportunity to investigate all representations made by or on behalf of Cajun and to consult with current and former franchisees of Cajun. The franchisee's success depends on their personal commitment, capability, and direct involvement in the day-to-day management of the business. This requirement emphasizes the importance of due diligence and self-reliance for prospective franchisees.
Churchs Chicken also assumes no liability for the evaluation of the franchised location's soil for hazardous substances, inspection of any structure for asbestos or other toxic materials, compliance with the Americans with Disabilities Act, or compliance with any other law. It is the franchisee's sole responsibility to obtain satisfactory evidence that each franchised location is free from environmental contamination and complies with ADA requirements.