What is prohibited regarding the commingling of revenues from the Co-Branded Business with the Gross Revenues from the Churchs Chicken Restaurant?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must maintain a separate bank account for the Restaurant from that of any Co-Branded Business that Franchisee owns or operates on or about the Franchised Location. All Gross Sales from the Restaurant must be deposited into this bank account. The revenues from the Co-Branded Business shall not be co-mingled with the Gross Revenues from the Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees operating a co-branded restaurant are explicitly prohibited from commingling revenues. Specifically, the revenues from the Co-Branded Business must not be mixed with the Gross Revenues from the Churchs Chicken Restaurant.
To ensure financial transparency and separation, Churchs Chicken requires franchisees to maintain a separate bank account for the Churchs Chicken Restaurant. All gross sales from the Churchs Chicken Restaurant must be deposited into this dedicated bank account, further preventing any commingling of funds.
This requirement has significant implications for franchisees. It necessitates meticulous record-keeping and accounting practices to accurately track and report revenues for each business separately. Franchisees must use computer hardware and software capable of segregating sales data, providing Cajun with the necessary information in a specified format. This ensures that Churchs Chicken can properly assess royalties and financial performance without being affected by the performance of the co-branded business. Failure to comply with these requirements could result in penalties or other enforcement actions by Churchs Chicken.