When must the Initial Franchise Fee be paid for a Churchs Chicken Authorized Site?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Execution of Franchise Agreement. Within 30 days after Cajun accepts a proposed site for the first Franchised Restaurant developed hereunder (but, if applicable, after expiry of the applicable waiting period following delivery of a franchise disclosure document), Developer shall execute a Franchise Agreement in Cajun's then-current standard form, and pay the Initial Franchise Fee for the Authorized Site.
B. In addition to the Development Fee required by Section 4, Developer shall pay Cajun an initial franchise fee ("Initial Franchise Fee") for each Franchised Restaurant to be developed under this Agreement in the amount set forth in Schedule 2. The Initial Franchise Fee is payable upon execution of the Franchise Agreement for each Franchised Restaurant. Developer acknowledges and agrees that the Initial Franchise Fee is fully earned by Cajun when paid, and it is not refundable.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the timing of the Initial Franchise Fee payment depends on whether the franchisee is developing a single restaurant or multiple restaurants under a Development Agreement. For a single restaurant, the Initial Franchise Fee is due within 30 days after Churchs Chicken accepts the proposed site, but only after the applicable waiting period following delivery of the Franchise Disclosure Document.
For franchisees entering into a Development Agreement to open multiple Churchs Chicken restaurants, the Initial Franchise Fee for each restaurant is due upon the execution of the individual Franchise Agreement for that specific restaurant. This fee is in addition to any Development Fees already paid under the Development Agreement.
In both scenarios, Churchs Chicken emphasizes that the Initial Franchise Fee is considered fully earned upon payment and is non-refundable. This is a standard practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise and providing initial support.