If a Regional Advertising Cooperative is established after a Churchs Chicken restaurant opens, how long does the franchisee have to become a member?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Cooperative has been established for the DMA in which the Franchised Restaurant will be located, Franchisee shall become a member of that Cooperative by the date the Franchised Restaurant commences operations, or, if a Cooperative for that DMA is established after the Franchised Restaurant opens, Franchisee shall become a member of that Cooperative within 30 days after the date on which the Cooperative commences operations.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, if a Regional Advertising Cooperative is established for the Designated Market Area (DMA) after a Churchs Chicken restaurant has already opened, the franchisee is required to become a member of that Cooperative within 30 days after the date on which the Cooperative commences operations.
This requirement ensures that all Churchs Chicken restaurants in a region participate in and contribute to regional advertising efforts. The franchisee must contribute to the Cooperative the percentage of Gross Sales determined by that Cooperative along with any statements or reports that Cajun or the Cooperative may require. This contribution is in addition to any contributions the franchisee makes to the Advertising Fund.
This policy ensures that Churchs Chicken restaurants benefit from coordinated regional advertising campaigns, but it also means franchisees must be prepared to adjust their budgets and participate in the Cooperative's activities shortly after its formation. Franchisees should stay informed about any potential Cooperative formations in their DMA to ensure they can comply with the membership requirements in a timely manner.