Regarding the development and operation of a Churchs Chicken franchised restaurant, does Cajun have a responsibility to ensure compliance with all applicable laws, ordinances, and regulations?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
and buildings of the Franchised Restaurant interior and exterior signs and logos using the names "Church's", "Church's Chicken" and "Church's Texas Chicken" without any prefix or suffix, and those other names, marks, advertising signs and logos of such nature, form, color, number, location and size, and containing that material as Cajun may from time to time direct. Franchisee shall not display in or upon the Franchised Location any sign, logo or advertising media of any kind that Cajun has not approved.
- J. Non-Restaurant Equipment. Franchisee shall not permit at the Franchised Restaurant any juke box, vending or game machine, gum machine, game, ride, gambling or lottery device, coin or token operated machine, automated teller machine (ATM) or any music, film or video device not authorized by Cajun.
K. Compliance with Laws and Good Business Practices
- (1) Franchisee shall secure and maintain in force in its name all required licenses, permits, certificates and other governmental authorizations relating to the operation of the Franchised Restaurant. Franchisee shall operate the Franchised Restaurant in compliance with all applicable laws and regulations, including, without limitation, all laws or regulations relating to the handling of food products, immigration and discrimination, occupational hazards and health insurance, employment laws, workers' compensation insurance, unemployment insurance, withholding and payment of federal and state income, social security, Medicare, sales and other taxes, and payment of sales taxes. All advertising and promotion by Franchisee shall be completely factual and shall conform to the highest standards of ethical advertising. Franchisee shall, in all dealings, adhere to the highest standards of honesty, integrity, fair dealing and ethical conduct. Franchisee shall refrain from any business or advertising practice that may be injurious to the goodwill associated with the Proprietary Marks or the business of Cajun or its affiliates, the System or other restaurants operated or franchised by Cajun or its affiliates.
- (2) Franchisee shall notify Cajun in writing within 5 days after the commencement of: (a) any legal or judicial action, suit or proceeding, or the issuance of any order, writ, injunction, award or decree of any court, agency or other governmental authority, which may adversely affect the operation or financial condition of Franchisee or the Franchised Restaurant; or (b) of any notice of violation of any law, ordinance or regulation relating to health or sanitation at the Franchised Restaurant.
- **L.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the franchisee is primarily responsible for operating the franchised restaurant in compliance with all applicable laws and regulations. This includes securing and maintaining all required licenses, permits, certificates, and other governmental authorizations. The franchisee must adhere to laws and regulations related to food handling, immigration, discrimination, occupational hazards, health insurance, employment, workers' compensation, unemployment insurance, and the withholding and payment of federal, state, and other taxes.
Furthermore, the franchisee is obligated to notify Cajun in writing within 5 days of any legal or judicial action, suit, proceeding, order, writ, injunction, award, or decree that may adversely affect the operation or financial condition of the franchisee or the franchised restaurant. This also includes notifying Cajun of any notice of violation of any law, ordinance, or regulation relating to health or sanitation at the franchised restaurant.
While the franchisee bears the direct responsibility for compliance, Cajun assumes no liability or responsibility for compliance with the Americans With Disabilities Act (ADA) or compliance with any other applicable law. It is the franchisee's sole responsibility to obtain satisfactory evidence and/or assurances that each franchised location (and any structures thereon) is in compliance with the requirements of ADA.
In summary, the Churchs Chicken franchisee is responsible for securing permits/licenses and adhering to all laws and regulations pertaining to restaurant operations. The franchisee must also inform Cajun of any legal or regulatory issues. However, Cajun does not assume liability for the franchisee's compliance with laws such as ADA.