What is the required action if the Operating Principal for a Churchs Chicken franchise no longer qualifies as such?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) If the Operating Principal no longer qualifies as such, Franchisee shall designate another qualified person to serve as Operating Principal within 30 days after the date the prior Operating Principal ceases to be qualified.
Franchisee's designee to become the Operating Principal must successfully complete the MIT Program and the NFOP.
Following Cajun's approval of a new Operating Principal, that person shall execute the attached form of Guaranty unless waived by Cajun in its sole discretion.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, if the Operating Principal no longer meets the required qualifications, the franchisee must designate another qualified person to take on the role within 30 days. This replacement Operating Principal must successfully complete the MIT Program and the NFOP.
Following the approval of the new Operating Principal by Churchs Chicken, that individual will be required to execute a Guaranty, unless Churchs Chicken waives this requirement at its discretion.
The qualifications for an Operating Principal include maintaining at least a 10% equity ownership in the franchisee (unless the franchisee is a publicly-held entity), being a member of the Continuity Group, having full control over the day-to-day operations of the franchised restaurant, devoting full-time efforts to supervising the restaurant, living within a reasonable driving distance of a franchised Churchs Chicken location, completing required training programs, and maintaining Churchs Chicken's approval.