Are all Churchs Chicken franchisees required to contribute to the Ad Fund on the same basis?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
are not required to consult with the Marketing EAC.
The Ad Fund:
All franchisees must contribute to our Ad Fund. You must contribute to the Ad Fund each week 5% of your Restaurant's Gross Sales. However, we may require you to contribute a minimum of $25,000 per year to the Ad Fund. If we create an Ad Co-op and require your participation, you must still contribute 5% of your Restaurant's weekly Gross Sales to the Ad Fund. All franchisees contribute to the Ad Fund on the same basis (except that some older Franchise Agreements may provide for different contribution rates and certain franchisees in captive locations (e.g., food courts) may have a negotiated lower Ad Fund contribution rate).
Restaurants that we and our affiliates own contribute to the Ad Fund on the same basis as you, except where ou
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 are generally required to contribute to the Ad Fund on the same basis. Specifically, franchisees must contribute 5% of their restaurant's gross sales each week to the Ad Fund. Churchs Chicken may also require a minimum contribution of $25,000 per year.
However, there are exceptions to this standard contribution. Some older franchise agreements may stipulate different contribution rates. Additionally, franchisees operating in captive locations, such as food courts, might have negotiated lower Ad Fund contribution rates.
Restaurants owned by Churchs Chicken and its affiliates also contribute to the Ad Fund on the same basis as franchisees. The exception is that Churchs Chicken-owned restaurants may contribute a greater percentage of gross sales than franchisees. These stipulations ensure that while a standard contribution model exists, the specific circumstances of individual franchise agreements and locations are taken into account.