What is the geographic radius of the post-term non-competition covenant for a Churchs Chicken franchise, restricting ownership of fried chicken restaurants?

According to the 2025 Churchs Chicken Franchise Disclosure Document, the post-term non-competition covenant includes a geographic restriction. After the franchise term ends, a franchisee is banned from owning any restaurant business that specializes in selling fried chicken within a 5-mile radius. This radius is calculated from the franchisee's former Churchs Chicken Restaurant location or any other Churchs Chicken Restaurant then in existence.

This restriction does not apply to any existing restaurants the franchisee owns at the time of termination, or to other restaurants the franchisee operates that are franchised by Churchs Chicken or its affiliates. This exception is important for franchisees who may have multiple Churchs Chicken locations or other franchise businesses with the same franchisor.

Individual owners are also subject to the same non-competition terms, as outlined in Section 4 of the Guaranty Agreement. This ensures that the owners themselves cannot circumvent the non-compete by operating a competing business under a different entity. The non-compete lasts for a period of two years.