For Churchs Chicken franchisees, what is the exclusive purpose for which each Cooperative must be organized?

According to the 2025 Churchs Chicken Franchise Disclosure Document, each Regional Advertising Cooperative must be organized exclusively to handle regional advertising programs and create standardized promotional materials for its members' local advertising, subject to Churchs Chicken's approval. This means that the Cooperative's activities are limited to these specific advertising and promotional functions.

For a prospective Churchs Chicken franchisee, this implies that a portion of their gross sales will be allocated to the Cooperative, which will use these funds to develop advertising campaigns and materials designed to boost sales within the region. However, all advertising and sales promotions must align with Churchs Chicken's standards and receive prior approval from Churchs Chicken, ensuring brand consistency.

Churchs Chicken retains significant control over the Cooperative, including the ability to require the Cooperative to adopt specific bylaws, incorporate, and approve all advertising content. Churchs Chicken also has the right to merge or terminate any Cooperative. This level of oversight ensures that the Cooperative's activities align with the overall marketing strategy and brand standards of Churchs Chicken. Franchisees should be aware that while they can vote on Cooperative matters, Churchs Chicken ultimately has the authority to make decisions if the members cannot agree, and can also grant exemptions from Cooperative membership and contributions.