For Churchs Chicken, what is required of a party who owns an interest in other restaurants franchised by Cajun or its affiliates?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) The restrictions in Sections 4(a)(ii) and 4(b) shall not apply to Developer's existing restaurant or foodservice operations, if any, which are identified in Schedule 1 to the Agreement, nor shall such restrictions apply to other restaurants operated by Developer that are franchised by Cajun or its affiliates.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the restrictions regarding ownership interest in other restaurant businesses do not apply to other restaurants operated by the Developer that are franchised by Cajun or its affiliates. This means a franchisee or developer is not restricted from owning or operating other restaurants that are also franchised by Cajun or its affiliates.
This exception allows Churchs Chicken franchisees to potentially diversify their business interests within the same franchise system. This could be beneficial for experienced franchisees looking to expand their portfolio without venturing into completely different restaurant concepts.
However, it is important to note that this exception only applies to restaurants franchised by Cajun or its affiliates. Owning or operating a competing fried chicken restaurant (other than a Churchs Chicken) is still restricted during the term of the agreement and for a period of two years after termination or expiration, within specific geographic areas. Franchisees should carefully review the Development Agreement and Franchise Agreement, including Schedule 1 and Schedule 2, to fully understand the scope of these restrictions and exceptions.