What minimum equity ownership interest is required in the franchise entity for Churchs Chicken?

According to Churchs Chicken's 2025 Franchise Disclosure Document, the Continuity Group, which consists of individuals designated by Churchs Chicken and the franchisee, must collectively maintain a minimum ownership stake in the franchise entity. Specifically, the Continuity Group must own at least 51% of the voting securities if the franchisee is a corporation.

If the franchisee operates as a partnership, the Continuity Group is required to hold at least a 51% interest in both the operating profits and losses, as well as a 51% ownership interest in the franchise. This requirement ensures that the individuals approved by Churchs Chicken maintain control and a vested interest in the performance and operation of the franchise.

This stipulation is important for prospective franchisees to consider, as it dictates the structure of ownership and control within their business. Any changes to the Continuity Group or their ownership interests necessitate the execution of addenda to Schedule 2 of the franchise agreement, reflecting these changes and ensuring the information remains accurate and complete. This requirement helps Churchs Chicken maintain standards and consistency across its franchise network by ensuring that approved individuals retain significant control over franchise operations.