What was the net change in the number of franchised Churchs Chicken outlets during 2024?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at Start of the Year | Outlets at End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 839 | 767 | -72 |
| 2023 | 767 | 744 | -23 | |
| 2024 | 744 | 714 | -30 | |
| Company Owned | 2022 | 161 | 158 | -3 |
| 2023 | 158 | 156 | -2 | |
| 2024 | 156 | 159 | +3 | |
| Total Outlets | 2022 | 1,000 | 925 | -75 |
| 2023 | 925 | 900 | -25 | |
| 2024 | 900 | 873 | -27 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 62–67)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the net change in the number of franchised outlets during 2024 was a decrease of 30 locations. At the start of 2024, there were 744 franchised Churchs Chicken outlets, and by the end of the year, the number had dropped to 714. This represents a continuation of a trend, as the number of franchised locations also decreased by 23 in 2023 and 72 in 2022.
For a prospective franchisee, this information indicates a potential contraction in the Churchs Chicken franchise system. While not necessarily a negative sign, it is important to understand the reasons behind this decrease. It could be due to closures of underperforming locations, non-renewals of franchise agreements, or transfers of ownership. Understanding the reasons behind the net decrease can provide valuable insight into the health and stability of the franchise system.
It's also worth noting that while the number of franchised locations decreased, the number of company-owned outlets increased by 3 during 2024, from 156 to 159. This could indicate a strategic shift by Churchs Chicken towards more company-owned operations. A prospective franchisee should inquire about the franchisor's long-term strategy and how it might impact franchisees.
Overall, the decrease in franchised Churchs Chicken outlets warrants further investigation. A potential franchisee should ask the franchisor about the reasons for the closures, the performance of existing locations, and the level of support provided to franchisees to ensure their success. This due diligence will help in making an informed decision about investing in a Churchs Chicken franchise.