When is the Initial Franchise Fee due for a Churchs Chicken restaurant?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
s ranged from $5,000 to $10,000 per Restaurant.
Initial Franchise Fee. The initial franchise fee ("Franchise Fee") is $20,000 for each Restaurant. You must pay the Franchise Fee, which is in addition to the Development Fee, when you sign the Franchise Agreement for each Restaurant. You must sign the Franchise Agreement within 120 days after we accept a site for the Restaurant and before opening the Restaurant.
Incentive Programs. We are currently offering a "Platinum Incentive Plan" to celebrate the 70th anniversary of our brand. Qualified franchisees must sign a Development Agreement with a 5-year term and include a minimum of 5 Restaurants, with at least 1 Restaurant opened each year from the date of the Development Agreement. Simultaneously with your signing of the Development Agreement, you will sign a Platinum Incentive Program Addendum to the Development Agreement in the form attached as Exhibit S. The Restaurants developed under that Development Agreement will receive the reduced Development Fee, Initial Franchise Fee, and Royalty Fee as described in the table below:
| Eligible Restaurant Developed under Platinum Incentive Plan | Development Fee (Due on signing Development Agreement) | Initial Franchise Fee (Due on signing Franchise Agreement) | Royalty Fee1 | Advertising Contribution2 | Restaurant Opening Deadline |
|---|---|---|---|---|---|
| st Restaurant 1 | $10,000 | $0 | 2% (Year 1 after Restaurant #1 Opens) 3% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | 3% (Year 1 after Restaurant #1 Opens) 4% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | No later than 12 months after the effective date of the Development Agreement |
| nd Restaurant 2 | $10,000 | $0 | 2% (Year 1 after Restaurant #2 Opens) 3% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | 3% (Year 1 after Restaurant #2 Opens) 4% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | No later than 24 months after the effective date of the Development Agreement |
| Eligible Restaurant Developed under Platinum Incentive Plan | Development Fee (Due on signing Development Agreement) | Initial Franchise Fee (Due on signing Franchise Agreement) | Royalty Fee1 | Advertising Contribution2 | Restaurant Opening Deadline |
|---|---|---|---|---|---|
| rd Restaurant 3 | $10,000 | $0 | 2% (Year 1 after Restaurant #3 Opens) 3% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | 3% (Year 1 after Restaurant #3 Opens) 4% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | No later than 36 months after the effective date of the Development Agreement |
| th Restaurant 4 | $10,000 | $0 | 2% (Year 1 after Restaurant #4 Opens) 3% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | 3% (Year 1 after Restaurant #4 Opens) 4% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | No later than 48 months after the effective date of the Development Agreement |
| th Restaurant 5 | $10,000 | $0 |
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the initial franchise fee is due when you sign the Franchise Agreement for each restaurant. The standard franchise fee is $20,000. The Franchise Agreement must be signed within 120 days after Churchs Chicken accepts a site for the Restaurant and before the restaurant opens.
Churchs Chicken offers a "Platinum Incentive Plan" to qualified franchisees who sign a Development Agreement with a 5-year term and commit to opening a minimum of 5 restaurants, with at least 1 restaurant opening each year. If a franchisee qualifies for the Platinum Incentive Plan, the initial franchise fee may be reduced to $0 for eligible restaurants developed under the plan.
Additionally, Churchs Chicken offers a reduced franchise fee of $10,000 for the first restaurant established by qualified U.S. military veterans and first responders. To qualify for this reduced fee, the veteran or first responder must own a majority of the equity interest in the company. However, if the franchisee owns the restaurant for less than 2 years, they must pay the full initial franchise fee of $20,000, which becomes due immediately when they are no longer an owner. Churchs Chicken reserves the right to extend, change, or discontinue the U.S. military & first responder program at any time.