Are all Churchs Chicken franchisees in Puerto Rico required to contribute to the advertising fund?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees, including all franchisees in Puerto Rico, require participation and contributions of a percentage of their gross sales to an advertising fund administered by Church's Chicken Advertising Fund (the Fund).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, all franchisees in Puerto Rico are required to participate in and contribute to the advertising fund. The advertising fund is administered by Church's Chicken Advertising Fund. This requirement is part of the franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees.
This means that if you are a Churchs Chicken franchisee in Puerto Rico, you must contribute a percentage of your gross sales to the advertising fund. The purpose of this fund is to support advertising and promotional activities for the Churchs Chicken brand. The contribution is mandatory, and it is a condition of the franchise agreement.
Franchisees should be aware that these advertising contributions are a standard part of the franchise agreement and are used to promote the brand collectively. Understanding the specific percentage of gross sales required for the advertising fund is crucial for financial planning. Franchisees should also inquire about how the advertising funds are used and the impact of advertising on their specific market.