When is the Churchs Chicken initial franchise fee of $20,000 due?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method Of Payment | When Due | To Whom | ||
|---|---|---|---|---|---|---|
| Low | High | Payment Is To Be Made1 | ||||
| Development Fee2 | $10,000 | $10,000 | Lump sum | At signing of Development Agreement | Cajun | |
| Initial Franchise Fee2 | $20,000 | $20,000 | Lump sum | At signing of Franchise Agreement | Cajun | |
| Grand Opening Marketing Funds3 | $15,500 | $25,000 | Lump sum | At signing of Franchise Agreement | Cajun |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–31)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the initial franchise fee of $20,000 is due as a lump sum payment. This payment is required at the signing of the Franchise Agreement. The payment is to be made to Cajun.
This means that a prospective Churchs Chicken franchisee must have the full $20,000 available when they are ready to finalize the franchise agreement. This fee is a standard part of the initial investment required to begin operating a Churchs Chicken franchise. It's important to note that this fee, like all costs paid to Churchs Chicken, is non-refundable as stated in the notes of Item 7.
Understanding when this fee is due allows potential franchisees to plan their finances accordingly and ensure they have sufficient capital at the appropriate time during the franchise acquisition process. This up-front payment is typical in the franchise industry, as it compensates the franchisor for granting the franchise rights and providing initial support and training.