What is the minimum annual Advertising Fund Contribution for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Tax Reimbursement | If any taxes, fees or assessments are imposed on us by reason of our acting as franchisor or licensing proprietary marks to you, then you must reimburse us that amount | 30 days after receipt of invoice | |
| Advertising Fund Contribution | 5% of Gross Sales (up to 1% of Gross Sales if a Regional Co-Op has been formed, plus contribution to Co-Op) and at least $25,000/year | Same as Royalty | |
| Digital and Technology Fees | Then-current amount. Beginning on July 15, 2024, about $205 per period ($2,665 annually) plus 5% of first party digital sales. | Same as Royalty | These amounts may change. This fee covers the costs for your participation in our integrated platforms for enhancing customer experiences with ordering, product pick up, and engagement. The fixed annual fee may be discounted for restaurants that were open all of 2024 and had annua |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees must contribute to the Advertising Fund. The standard contribution is 5% of Gross Sales. However, if a Regional Co-Op has been formed, the contribution is reduced to up to 1% of Gross Sales, plus a contribution to the Co-Op. Regardless of the percentage of gross sales, the minimum annual contribution to the Advertising Fund is $25,000 per year.
This means that even if a Churchs Chicken franchise has relatively low sales, they are still obligated to pay a minimum of $25,000 annually to the advertising fund. This money is used by Churchs Chicken for marketing and advertising efforts to promote the brand.
For a prospective franchisee, this represents a significant fixed cost that must be factored into their financial projections. It is important to understand how the advertising fund is managed and how the funds are used to benefit franchisees. Franchisees should also inquire about the formation of any Regional Co-Ops in their area, as this could potentially reduce their advertising contribution. It is also important to note that the 5% of gross sales could be higher than the $25,000 minimum, depending on the store's revenue.