Is a Churchs Chicken franchisee required to join a purchasing cooperative, and if so, what are the obligations?

According to the 2025 Churchs Chicken Franchise Disclosure Document, Churchs Chicken franchisees may be required to become members of a purchasing cooperative if the franchisor, Cajun, requires it. If membership is required, the franchisee must pay all reasonable membership fees assessed by the cooperative.

In addition to a purchasing cooperative, Churchs Chicken, in its sole discretion, may establish a Regional Advertising Cooperative in the regional area in which the Franchised Restaurant is located. Franchisees must contribute to this cooperative the percentage of Gross Sales determined by that Cooperative along with any statements or reports that Cajun or the Cooperative may require. A Cooperative may also be established for the DMA in which the Franchised Restaurant is located upon the favorable vote of 80% of the owners of all Church's Restaurants (including Church's Restaurants operated by Cajun and its affiliates) on the basis of one vote for each restaurant owned and operated by that owner within that DMA. If a Cooperative has been established for the DMA in which the Franchised Restaurant will be located, Franchisee shall become a member of that Cooperative by the date the Franchised Restaurant commences operations, or, if a Cooperative for that DMA is established after the Franchised Restaurant opens, Franchisee shall become a member of that Cooperative within 30 days after the date on which the Cooperative commences operations. Franchisee shall not be required to be a member of more than one Cooperative with respect to the Franchised Restaurant.

Cajun may grant a franchisee an exemption from the requirement of membership in the Cooperative and/or from the obligation to contribute to the Cooperative (including a reduction, deferral or waiver of such contribution), upon written request of such a franchisee stating reasons supporting an exemption. If an exemption is granted to a franchisee, such franchisee shall be required to expend on local advertising, on a monthly basis, the same amount as would otherwise be assessed by the Cooperative. Cajun may exempt Church's Restaurants operated by Cajun and its affiliates from membership in the Cooperative and/or from the obligation to contribute to the Cooperative.