For the Churchs Chicken Platinum Incentive Plan, what is the deadline for opening each subsequent franchised restaurant (second through fifth) after the first one to be considered an Eligible Restaurant?

According to Churchs Chicken's 2025 Franchise Disclosure Document, to qualify for the Platinum Incentive Plan, a developer must open each subsequent franchised restaurant (second through fifth) no later than one year after the opening date of the immediately prior franchised restaurant. This is in addition to opening the first franchised restaurant no later than one year following the date of the Development Agreement. Meeting these deadlines ensures that each restaurant is considered an "Eligible Restaurant" under the plan.

Failure to meet these deadlines has significant consequences. If a developer fails to open the first restaurant by the specified deadline, they will not be entitled to any benefits under the Platinum Incentive Plan. Similarly, failing to open the second or any subsequent restaurant within twelve months of the previous one will result in the termination of the addendum and the development incentives.

Furthermore, if the addendum is terminated, any open and operating franchised restaurant that had received a reduced royalty rate as a development incentive will immediately revert to the standard 5% royalty rate. This underscores the importance of adhering to the development schedule outlined in the Development Agreement to maintain the benefits of the Platinum Incentive Plan.

In addition to the one-year-after-previous-opening deadline, the table also specifies the opening deadlines relative to the Development Agreement's effective date. For example, the 2nd restaurant must open no later than 24 months after the Development Agreement's effective date, the 3rd restaurant no later than 36 months, the 4th restaurant no later than 48 months, and the 5th restaurant no later than 60 months. A prospective franchisee should carefully consider these timelines and their ability to meet them before entering into a Development Agreement with Churchs Chicken.