What outstanding obligations must be satisfied or adequately provided for before a Churchs Chicken Developer can proceed with a Minority Interest Transfer?

According to Churchs Chicken's 2025 Franchise Disclosure Document, a Developer must meet specific financial obligations before a Minority Interest Transfer can be approved. All accrued monetary obligations to Churchs Chicken and its affiliates must be satisfied. This includes any debts arising from the Development Agreement or other agreements.

In addition to direct financial obligations to the franchisor, all outstanding obligations related to each franchised restaurant must be satisfied or adequately provided for. These obligations include, but are not limited to, bills from suppliers, taxes, judgments, and any required governmental reports, returns, affidavits, or bonds. Churchs Chicken has the right to demand that a reasonable sum of money be placed in escrow to ensure that all of these obligations are satisfied before the transfer proceeds.

This requirement ensures that the Churchs Chicken system maintains financial stability and that new ownership does not inherit unresolved financial issues. A prospective franchisee should be prepared to provide documentation and potentially set aside funds in escrow to demonstrate compliance with these requirements before pursuing a Minority Interest Transfer.