Does Churchs Chicken grant limited exclusivity for the Development Area?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to a Franchise Agreement, you must sign a Development Agreement regardless of the number of Restaurants you commit to develop. A copy of our standard Development Agreement is attached as Exhibit G. Under the Development Agreement, you are granted the right and you accept the responsibility to develop a specific number of Restaurants in a specific geographic area (the "Development Area"). In some instances, we will sign an Amendment to the Development Agreement which provides limited exclusivity for the Development Area. A copy of our standard Amendment to Development Agreement is attached as Exhibit H. The Development Agreement also specifies the number of Restaurants that you must open and operate and the dates by which they must open and be in operation in a development schedule (the "Development Schedule") to the Development Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–10)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees may receive limited exclusivity for their Development Area. The Development Agreement grants the franchisee the right and responsibility to develop a specific number of restaurants in a defined geographic area.
However, Churchs Chicken may sign an Amendment to the Development Agreement that provides limited exclusivity for the Development Area. The Development Agreement also specifies the number of restaurants that the franchisee must open and operate, including the dates by which they must be operational, according to a development schedule.
Prospective franchisees should carefully review the Development Agreement and any amendments to understand the specific terms of exclusivity granted, the development schedule, and the obligations for opening and operating restaurants within the Development Area. This will help them assess the potential for competition from other Churchs Chicken restaurants and the support they can expect from the franchisor in developing their territory.