What is the minimum annual contribution required for the Churchs Chicken Ad Fund?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
are not required to consult with the Marketing EAC.
The Ad Fund:
All franchisees must contribute to our Ad Fund. You must contribute to the Ad Fund each week 5% of your Restaurant's Gross Sales. However, we may require you to contribute a minimum of $25,000 per year to the Ad Fund. If we create an Ad Co-op and require your participation, you must still contribute 5% of your Restaurant's weekly Gross Sales to the Ad Fund. All franchisees contribute to the Ad Fund on the same basis (except that some older Franchise Agreements may provide for different contribution rates and certain franchisees in captive locations (e.g.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, all franchisees must contribute to the Ad Fund. The standard contribution is 5% of the Restaurant's Gross Sales each week. However, Churchs Chicken may require a minimum annual contribution of $25,000 to the Ad Fund.
This means that even if 5% of a franchisee's weekly gross sales does not amount to $25,000 over the course of a year, they still need to pay that minimum amount. This could impact the franchisee's profitability, especially in the early years of operation or if the restaurant's sales are lower than anticipated.
It is important to note that some older franchise agreements or franchisees in captive locations may have different contribution rates. However, all franchisees generally contribute to the Ad Fund on the same basis. The Ad Fund is used for advertising, marketing, and public relations programs, and Churchs Chicken has the right to direct all spending by the Ad Fund.