When did the Plan become effective according to the Churchs Chicken FDD?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to encourage the development of new franchised Church's Texas Chicken restaurants by franchisees who satisfy Cajun's financial requirements for new development, Cajun has implemented a development incentive program (the "Platinum Incentive Plan") for franchised Church's Texas Chicken restaurants ("Franchised Restaurants") that are developed pursuant to a Church's Texas Chicken Development Agreement that provides for the development of a minimum of five Franchised Restaurants within 5 years (the "Development Agreement").
Cajun and Developer are entering into this Addendum to modify the Development Agreement and to provide for Developer's receipt of the development incentives offered by Cajun pursuant to the Platinum Incentive Plan.
NOW, THEREFORE, in consideration of the mutual covenants, agreements and obligations set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:
1. Platinum Incentive Plan Requirements.
- A. In order to be eligible for the Platinum Incentive Plan, Developer must open its first Franchised Restaurant no later than one year following the date of the Development Agreement (the "First Restaurant Deadline"). If Developer fails to open its first Franchised Restaurant by the First Restaurant Deadline, Developershall not be entitled to receive any benefits under the Platinum Incentive Plan.
- B. If the first Franchised Restaurant is developed in accordance with Section 1.A., the Platinum Incentive Plan benefits set forth in this Addendum shall apply to the second through fifth Franchised Restaurants that Developer opens in full compliance with the Development Schedule and the Development Agreement (each an "Eligible Restaurant"); provided that each Franchised Restaurant is opened by Developer by no later than one year after the opening date of the immediately prior Franchised Restaurant.
Source: Item 4 — BANKRUPTCY (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the effective date of the Platinum Incentive Plan is tied to the Development Agreement. To be eligible for the Platinum Incentive Plan, a developer must open their first franchised restaurant no later than one year following the date of the Development Agreement, referred to as the "First Restaurant Deadline."
If the first Churchs Chicken restaurant is developed by the First Restaurant Deadline, the Platinum Incentive Plan benefits will apply to the second through fifth restaurants that the Developer opens, provided each restaurant is opened no later than one year after the opening date of the immediately prior franchised restaurant.
In summary, the Platinum Incentive Plan's benefits become effective for subsequent restaurant openings once the initial restaurant is opened within one year of the Development Agreement date, with a condition that each subsequent restaurant also opens within one year of the previous one.