If a Churchs Chicken developer defaults on a non-payment, how many days do they have to cure it?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Length of the Development | §1 | Until the last date of the Development Schedule. |
| Term | ||
| b. Renewal or Extension of Term | Not applicable | |
| c. Requirements for You to | Not applicable | |
| Renew or Extend | ||
| d. Termination by You | Not applicable | |
| e. Termination by Us Without | Not applicable | |
| Cause | ||
| f. Termination by Us with Cause | §15 | We can terminate only if you default under the agreement and for other stated grounds. |
| g. “Cause” Defined - Curable Defaults | §15 | You have 30 days after notice to cure certain defaults susceptible of cure, but only 10 days to cure non-payment defaults. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 50–55)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a developer has a limited time to cure a default related to non-payment. Specifically, if a Churchs Chicken developer defaults due to non-payment, they only have 10 days after receiving notice to correct the issue.
This short cure period for non-payment defaults underscores the importance of maintaining sufficient financial resources. Failing to remit payments on time can quickly lead to termination of the development agreement. This is a stricter standard than the cure period for other types of defaults, which allows 30 days for resolution.
Prospective Churchs Chicken developers should carefully consider their financial stability and ability to meet payment obligations promptly to avoid the risk of termination. It is crucial to have a solid financial plan and contingency funds to address any potential shortfalls and ensure timely payments to Churchs Chicken.