Must the lease or sublease for a Churchs Chicken franchise contain any covenants or other obligations that would prevent the Developer from performing its obligations under the Franchise Agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless waived in writing by Cajun, any lease, sublease, letter of intent or lease memorandum for the Authorized Site shall contain provisions that satisfy the following requirements during the entire term of the lease, including any renewal terms:
- (1) The landlord consents to Developer's use of the proprietary signs, distinctive exterior and interior designs and layouts, and the Proprietary Marks prescribed by Cajun, and upon
expiration or the earlier termination of the lease, consents to permit Developer, at Developer's expense, to remove all such items and other trade fixtures, so long as Developer makes repairs to the building caused by such removal.
(2) The landlord agrees to provide Cajun (at the same time sent to Developer) a copy of all amendments and assignments and notices of default pertaining to the lease and the leased premises.
(3) Cajun shall have the right to enter the leased premises to make any modifications or alterations necessary to protect the System and the Proprietary Marks and to cure, within the time periods provided by the lease, any default under the lease, all without being guilty of trespass or other tort and to charge Developer for these costs.
(4) The landlord agrees that Cajun shall not be responsible for any obligations, debts or payments under the lease.
(5) The landlord agrees that, following the expiration or earlier termination of the Franchise Agreement, Developer shall have the right to make those alterations and modifications to the premises as may be necessary to clearly distinguish to the public the premises from a Church's Restaurant and also make those specific additional changes as Cajun reasonably may request for that purpose.
The landlord also agrees that, if Developer fails to promptly make these alterations and modifications, Cajun shall have the right to do so without being guilty of trespass or other tort so long as Cajun makes repairs to the building caused by such removal.
- (6) The landlord agrees not to amend or otherwise modify the lease in any manner that would affect any of the foregoing requirements without Cajun's prior consent, which consent shall not be unreasonably withheld.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, any lease, sublease, letter of intent, or lease memorandum for the authorized site must include specific provisions, unless waived in writing by Cajun. These provisions are designed to ensure that the landlord's obligations do not interfere with the developer's ability to fulfill their obligations under the Franchise Agreement.
Specifically, the landlord must consent to the developer's use of Churchs Chicken's proprietary signs, distinctive exterior and interior designs, layouts, and proprietary marks. Upon expiration or termination of the lease, the landlord must allow the developer to remove these items at the developer's expense, provided the developer repairs any damage caused by the removal. The landlord must also agree to provide Cajun with copies of all amendments, assignments, and notices of default related to the lease and premises at the same time they are sent to the developer.
Furthermore, the lease should grant Cajun the right to enter the premises to make necessary modifications or alterations to protect the Churchs Chicken system and proprietary marks. Cajun also has the right to cure any default under the lease within the specified time periods, without being considered a trespasser, and to charge these costs to the developer. The landlord must also agree that Cajun is not responsible for any obligations, debts, or payments under the lease. Finally, the landlord must agree that after the Franchise Agreement expires or terminates, the developer can make alterations to distinguish the premises from a Churchs Chicken restaurant, with Cajun having the right to make these changes if the developer fails to do so promptly. The landlord cannot amend or modify the lease in a way that affects these requirements without Cajun's prior consent, which will not be unreasonably withheld.