What is the Initial Franchise Fee 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 | 2% (Year 1 after Restaurant #5 Opens) 3% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | 3% (Year 1 after Restaurant #5 Opens) 4% (Year 2) 4% (Year 3) 5% (Year 4 and thereafter) | No later than 60 months after the effective date of the Development Agreement |
1Changes to the Royalty Fee as described in this table will start on the first day of the
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the standard initial franchise fee is $20,000 for each restaurant. This fee is paid when signing the Franchise Agreement, in addition to a Development Fee. The Franchise Agreement must be signed within 120 days after Churchs Chicken accepts the site for the restaurant and before the restaurant opens.
However, Churchs Chicken offers incentive programs that can reduce or waive the initial franchise fee. For example, the "Platinum Incentive Plan" offers a $0 initial franchise fee for eligible restaurants developed under the plan. To qualify, franchisees must sign a Development Agreement with a 5-year term, including a minimum of 5 restaurants, with at least 1 restaurant opening each year from the Development Agreement date. Existing franchisees must be in good standing to qualify for the Platinum Incentive Plan.
Additionally, a reduced franchise fee of $10,000 is available to qualified U.S. military veterans and first responders for their first restaurant. To qualify for this discount, the veteran or first responder must either have received an honorable discharge from the U.S. Armed Forces or be currently serving and eligible for an honorable discharge, or have been employed for at least 5 years as a law enforcement officer, medical doctor, nurse, emergency medical technician, or firefighter. If the franchisee owns the restaurant for less than 2 years, they must pay the full initial franchise fee of $20,000.
It is important to note that these incentive programs may not be combined, and Churchs Chicken reserves the right to extend, change, or discontinue these programs at any time. Prospective franchisees should carefully review Exhibit S and Exhibit T of the Franchise Disclosure Document for additional limitations and requirements related to these incentives.