What incentive plan benefits are provided to the Churchs Chicken franchisee under this addendum?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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Addendum, which shall memorialize the Royalty Fee Reduction benefits of the Platinum Incentive Plan.
- 3. Termination. This Addendum, and the development incentives offered pursuant to this Addendum, shall terminate following written notice to Developer upon the occurrence of any of the following events during the Development Incentive Period:
- A. Developer fails to open the first Franchised Restaurant under the Development Agreement by the First Restaurant Deadline;
- B. Developer fails to open its second or any additional Franchised Restaurant within twelve months following the opening date of the previous Franchised Restaurant opened by Developer under the Development Agreement;
- C. Developer fails to meet any Site Acceptance Date or Opening Date for any Franchised Restaurant required to be developed under the Development Agreement; or
- D. Developer receives a written notice of default under the Development Agreement or any other agreement with Cajun or its affiliates and fails to cure the default within the applicable cure period, if any.
- 4. Effect of Termination. If this Addendum is terminated, Developer shall not receive any further development incentives with respect to any additional Franchised Restaurants developed under the Development Agreement and any open and operating Franchised Restaurant that received a reduced royalty rate as a development incentive shall immediately revert to a 5% royalty rate.
- 5. Capitalized Terms. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Development Agreement.
- 6. Limited Modification. Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect.
- 7. Counterparts. This Addendum may be executed in counterparts, and each copy so executed and delivered shall be deemed to be an original. Any signature by email or facsimile shall be binding.
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the day and year first above written.
CAJUN: CAJUN GLOBAL LLC DEVELOPER:
FORM OF DEVELOPMENT INCENTIVE ADDENDUM ("Platinum Incentive Plan) TO CHURCH'S TEXAS CHICKEN FRANCHISE AGREEMENT
| THIS DEVELOPMENT Chicken Franchise Agreement Global LLC ("Cajun") and 202 | INCENTIVE ADDENDUM ("Addendum") to the Church's Texas dated as of ("Franchise Agreement") between Cajun ("Franchisee") is entered into as of the day of , | |
|---|---|---|
| RECITALS | ||
| Pursuant to the Franchise franchised Church's Texas Chicken Restaurant"). | Agreement, Cajun granted Franchisee the right to develop and operate a restaurant located at (the "Franchised | |
| In order to encourage has implemented a development Chicken Development Agreement Church's Texas Chicken restaurants | the development of franchised Church's Texas Chicken restaurants, Cajun incentive program for franchisees that signed a qualifying Church's Texas pursuant to which they agreed to develop a minimum of 5 franchised within 5 years from the Effective Date of the Development Agreement. |
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the franchise agreement includes an incentive addendum that outlines the Platinum Incentive Plan benefits for franchisees. To encourage the development of new franchised Churchs Chicken restaurants, Cajun has implemented this plan for franchisees who meet specific financial requirements and commit to developing a minimum of five franchised restaurants within five years under a Church's Texas Chicken Development Agreement.
The Platinum Incentive Plan provides specific financial benefits to developers who meet the requirements. One key incentive is a reduced royalty fee schedule during the first five years of operation. Specifically, the royalty fee is 0% in the first year after the restaurant opens, 2% in the second year, 3% in the third year, 4% in the fourth year, and 5% in the fifth year and thereafter.
To be eligible for the Platinum Incentive Plan, the developer must open their first franchised restaurant within one year of the Development Agreement date. If this deadline is met, the Platinum Incentive Plan benefits will apply to the second through fifth franchised restaurants, provided each restaurant opens no later than one year after the opening date of the immediately prior franchised restaurant. These incentives are designed to support and encourage the rapid development of new Churchs Chicken locations by qualified franchisees.