If a Churchs Chicken franchisee is granted an exemption from Cooperative membership, what advertising obligation do they have?

According to Churchs Chicken's 2025 Franchise Disclosure Document, if a franchisee is granted an exemption from membership in the Regional Advertising Cooperative, they are still required to spend money on local advertising. Specifically, the franchisee must expend on local advertising, on a monthly basis, the same amount as would otherwise be assessed by the Cooperative.

This means that even if a Churchs Chicken franchisee is not formally part of the Cooperative, they cannot avoid the financial obligation to contribute to advertising efforts. Instead of contributing to the Cooperative, they must directly spend the equivalent amount on local advertising initiatives. This ensures that all Churchs Chicken locations, regardless of Cooperative membership status, are actively promoting the brand in their respective markets.

It's important to note that all local advertising by the franchisee, whether part of the Cooperative or independent due to an exemption, is subject to Churchs Chicken's approval. This includes the media used, the type and format of the advertising, and adherence to the standards and requirements set by Churchs Chicken. The franchisee must submit all proposed advertising and promotional plans to Churchs Chicken for approval before use, except for materials previously approved. This requirement ensures brand consistency and quality control across all advertising efforts.