Is a Churchs Chicken franchisee required to renovate and modernize their restaurant as a condition of renewal?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) In order for Franchisee to be eligible to renew the Franchise for the Renewal Term, Franchisee must meet all of the following conditions prior to and at the end of the Initial Term:
(a) Franchisee shall not be in default under this Agreement or any other agreements between Franchisee and Cajun or its affiliates and, for the 12 months prior to the date of Franchisee's notice and the 12 months prior to the expiration of the Initial Term, Franchisee shall not have been in default beyond the applicable cure period under this Agreement or any other agreements between Franchisee and Cajun or its affiliates throughout the Initial Term; Franchisee shall not be in default beyond the applicable cure period under any real estate lease, equipment lease or financing instrument relating to the Franchised Restaurant; and Franchisee shall not be in default beyond the applicable cure period with any vendor or supplier to the Franchised Restaurant.
(b) Franchisee shall, at its expense, make the capital expenditures required to renovate and modernize the Franchised Restaurant to conform to the interior and exterior designs, décor, color schemes, furnishings and equipment and presentation of the Proprietary Marks consistent with the image of the System for new Church's Restaurants at the time Franchisee provides Cajun the renewal notice, including such structural changes, remodeling, redecoration and modifications to existing improvements as may be necessary to do so.
(c) Franchisee and its employees at the Franchised Restaurant shall be in compliance with Cajun's then-current training requirements, including all continuing education certificate requirements.
(d) Franchisee must have the right to remain in possession of the Franchised Location, or other premises acceptable to Cajun, for the Renewal Term and all monetary obligations owed to Franchisee's landlord, if any, or mortgagor, if any, must be current.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees must renovate and modernize their restaurant to meet current brand standards as a condition of franchise renewal. Specifically, the franchisee is responsible for capital expenditures to conform the restaurant to the latest designs, décor, color schemes, furnishings, equipment, and presentation of Churchs Chicken's proprietary marks. This includes any necessary structural changes, remodeling, redecoration, and modifications to existing improvements.
To be eligible for renewal, the franchisee must meet this condition at the time they provide Churchs Chicken with their renewal notice. Additionally, the franchisee must not be in default of the franchise agreement or any other agreements with Churchs Chicken or its affiliates. They also need to be compliant with the brand's current training requirements for both themselves and their employees.
Furthermore, the franchisee must have the legal right to remain in possession of the franchised location for the renewal term, ensuring all monetary obligations to landlords or mortgagors are current. These requirements ensure that Churchs Chicken restaurants maintain a consistent brand image and operational standard, which is typical in the franchise industry to protect the brand's reputation and customer experience.