Does Churchs Chicken guarantee that advertising expenditures in a specific geographic area will be proportionate to the contributions from Churchs Chicken restaurants in that area?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee agrees that Cajun is not liable to Franchisee, and Franchisee forever covenants not to sue and holds Cajun harmless of any liability or obligation to ensure that expenditures by the Advertising Fund in or affecting any geographic area (including the Franchised Location) are proportionate or equivalent to the contributions to the Advertising Fund by Church's Restaurants operating in that geographic area, or that any Church's Restaurant will benefit directly or in proportion to its contribution to the Advertising Fund from the development of advertising and marketing materials or the placement of advertising. Except as expressly provided in this Section, neither Cajun nor its designee assumes any direct or indirect liability to Franchisee with respect to the maintenance, direction, or administration of the Advertising Fund.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, Churchs Chicken does not guarantee that advertising expenditures in any specific geographic area will be proportionate or equivalent to the contributions to the Advertising Fund by Churchs Chicken restaurants operating in that area. The franchisee agrees that Cajun, the franchisor, is not liable to ensure that advertising expenditures in or affecting any geographic area, including the franchised location, are proportionate or equivalent to the contributions to the Advertising Fund by Church's Restaurants operating in that geographic area.
Furthermore, Churchs Chicken is not obligated to ensure that any Church's Restaurant will benefit directly or in proportion to its contribution to the Advertising Fund from the development of advertising and marketing materials or the placement of advertising. This means that a franchisee cannot sue Churchs Chicken or hold them liable if advertising expenditures in their area are not in direct proportion to the contributions made by Churchs Chicken restaurants in that area.
This disclaimer protects Churchs Chicken from any legal action related to advertising fund allocation. It also highlights the risk that a franchisee's contribution to the advertising fund may not directly correlate with the advertising benefits they receive. Prospective franchisees should consider this lack of guarantee and the potential for disproportionate advertising benefits when evaluating the Churchs Chicken franchise opportunity.