If the Churchs Chicken Developer is an individual or partnership, what additional representations and warranties must the Developer make?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) If Developer is an individual, or a partnership comprised solely of individuals, Developer makes the following additional representations and warranties: (a) each individual has executed this Agreement; (b) each individual shall be jointly and severally bound by, and personally liable for the timely and complete performance and a breach of, each and every provision of this Agreement; and (c) notwithstanding any Transfer for convenience of ownership, pursuant to Section 12.F., each individual shall continue to be jointly and severally bound by, and personally liable for the timely and complete performance and a breach of, each and every provision of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, if the Developer is an individual or a partnership comprised solely of individuals, they must make additional representations and warranties. Specifically, each individual must execute the Development Agreement, thereby agreeing to be jointly and severally bound by all its provisions. This means that each individual is personally liable for the timely and complete performance of the agreement and for any breaches that may occur.
Furthermore, this personal liability extends even if there is a transfer of ownership for convenience, as outlined in Section 12.F of the agreement. Each individual remains jointly and severally bound, ensuring that Churchs Chicken has recourse to any of the individuals involved in the event of non-compliance or breach, regardless of internal ownership changes within the partnership.
This requirement is significant for prospective Churchs Chicken developers because it means that individuals cannot shield themselves from liability through the partnership structure. Each partner is fully responsible for the obligations under the Development Agreement, which could include financial obligations, performance standards, and adherence to Churchs Chicken's operational guidelines. This is a common practice in franchising to ensure that the franchisor has a direct line of accountability with the individuals operating the franchise.