What is the minimum annual Advertising Fund Contribution required 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 |
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 contribution is 5% of Gross Sales, but this can be reduced to 1% of Gross Sales if a Regional Co-Op has been formed, in addition to a contribution to the Co-Op. Regardless of gross sales, the minimum annual contribution to the Advertising Fund is $25,000 per year. This contribution is due at the same time as royalty payments.
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 it benefits individual franchisees. Franchisees should also inquire about the formation and operation of Regional Co-Ops, as participation could potentially lower the percentage of gross sales contributed directly to the Advertising Fund.