For Churchs Chicken, what happens if the Operating Principal no longer qualifies as such?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) If the Operating Principal no longer qualifies as such, Franchisee shall designate another qualified person to serve as Operating Principal within 30 days after the date the prior Operating Principal ceases to be qualified.
Franchisee's designee to become the Operating Principal must successfully complete the MIT Program and the NFOP.
Following Cajun's approval of a new Operating Principal, that person shall execute the attached form of Guaranty unless waived by Cajun in its sole discretion.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, if the Operating Principal no longer meets the required qualifications, the franchisee has 30 days to designate another qualified person to take on the role. This replacement must occur within 30 days from the date the previous Operating Principal became unqualified.
The new designee must successfully complete the MIT Program and the NFOP, ensuring they are adequately trained to manage the Churchs Chicken franchise. This requirement aims to maintain consistent operational standards and financial performance across all franchised locations.
Following Cajun's approval of the new Operating Principal, that person must execute a Guaranty, unless Cajun waives this requirement at its discretion. This Guaranty likely serves as a commitment from the new Operating Principal to uphold the franchise agreement and protect Churchs Chicken's interests. The qualifications for an Operating Principal include maintaining at least a 10% equity ownership, full control over day-to-day operations, devoting full-time efforts to supervising the restaurant, maintaining a primary residence within a reasonable driving distance, and obtaining Cajun's approval.