What is the name of the entity that administers the advertising fund for Churchs Chicken?

According to Churchs Chicken's 2025 Franchise Disclosure Document, the advertising fund is administered by an entity called Church's Chicken Advertising Fund (the Fund). Franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees, including all franchisees in Puerto Rico, require participation and contributions of a percentage of their gross sales to this fund. This means that a portion of a franchisee's gross sales will be allocated to the Church's Chicken Advertising Fund.

The advertising program is conducted through a national fund (Ad Fund), which is controlled and administered by Churchs Chicken to support each designated market area (DMA). The Ad Fund is used for advertising, marketing, and public relations programs and related activities. Churchs Chicken cannot use the Ad Fund for its general operating expenses, except as stated in the Franchise Agreement. This indicates that the funds are specifically earmarked for promotional activities to benefit the Churchs Chicken system.

All franchisees must contribute to the Ad Fund, with a contribution of 5% of the Restaurant's Gross Sales each week. Churchs Chicken may require a minimum contribution of $25,000 per year to the Ad Fund. Restaurants that Churchs Chicken and its affiliates own also contribute to the Ad Fund on the same basis as franchisees, unless their restaurants contribute a greater percentage of Gross Sales. This ensures that both franchised and company-owned restaurants contribute to the advertising efforts.

Churchs Chicken administers the Ad Fund and has the right to direct all spending by the Ad Fund. While the Ad Fund is not audited annually, Churchs Chicken prepares an annual statement of monies collected and costs incurred by the Ad Fund, which is available to franchisees upon written request. In fiscal year 2024, the Ad Fund's expenditures were allocated as follows: 16% on production, 56% on media placement, 6% on point-of-purchase items, 2% on research and development, 1% on public relations and promotions, 4% on digital technology, and 15% on administration and one time strategic initiatives/research. This provides transparency regarding how the advertising funds are utilized.