Is a Churchs Chicken franchisee required to consult with legal counsel?
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.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee must acknowledge that the franchise agreement involves significant legal and business risks. Churchs Chicken does not guarantee a franchisee's success. As part of the agreement, the franchisee must confirm they have thoroughly read the agreement, conducted an independent investigation of the business opportunity, and have been thoroughly advised by legal counsel or other advisors of their choosing.
This acknowledgement confirms that the franchisee recognizes the potential for changes in the nature of the Churchs Chicken business over time. It also confirms that the franchisee has had ample opportunity to investigate all representations made by or on behalf of Churchs Chicken and to consult with current and former franchisees.
This requirement ensures that franchisees enter the agreement with a clear understanding of their obligations, the risks involved, and the potential for changes in the business. It also protects Churchs Chicken by confirming that franchisees have had the opportunity to seek independent advice and conduct their own due diligence.