If a Churchs Chicken franchisee fails to complete the de-identification process at a closed restaurant, who may complete it and who bears the costs?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Sublessee's Bank for Monthly Rent Payments (if different than the banking information noted above) | ||
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| Check one: | ☐ Checking Account | ☐ Savings Account |
Church's Texas Chicken Final FDD 04/30/25 Exhibit Q – Page 23 Sublease - 2025
EXHIBIT "C"
RESTAURANT CLOSING/DE-IDENTIFICATION CHECKLIST
All CHURCH'S TEXAS CHICKEN® Restaurants that are permanently closing must be de-identified as a CHURCH'S TEXAS CHICKEN® Restaurant.
The following list must be completed immediately but no later than seven (7) business days after the restaurant ceases operation. Once the de-
| identification work is completed you must take several photographs of the Restaurant, which will verify the completion of the de-identification work and send them to your Regional Franchise Director. CAJUN may inspect a closed Restaurant to insure compliance and if necessary complete the de-identification process and pass these costs on to the Franchisee. |
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, if a franchisee fails to complete the de-identification process at a closed restaurant, Cajun may inspect the closed restaurant to ensure compliance. If necessary, Cajun may complete the de-identification process.
The costs associated with this de-identification process will be passed on to the franchisee. This means the franchisee is ultimately responsible for covering the expenses incurred by Cajun to complete the de-identification.
This clause ensures that closed Churchs Chicken restaurants do not continue to represent the brand after ceasing operations, maintaining brand consistency and preventing potential consumer confusion. It also provides Churchs Chicken with a recourse to ensure de-identification is completed even if the franchisee fails to do so, protecting their brand image. Franchisees should be aware of these requirements and potential costs when closing a location.