What is the residency requirement for the Operating Principal of a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Operating Principal.** Franchisee shall designate and retain an individual to serve as the "Operating Principal." The Operating Principal as of the date of this Agreement is identified in Schedule 2.
Unless waived in writing by Cajun, the Operating Principal shall meet all of the following qualifications:
(1) The Operating Principal, at all times, shall have at least a 10% equity ownership interest in Franchisee (unless Franchisee is a publicly-held entity or a wholly-owned subsidiary of a publicly-held entity).
(2) The Operating Principal, at all times, shall be a member of the Continuity Group and, at a minimum, have full control over the day-to-day activities, including operations, of the Franchised Restaurant and those other restaurants (that are franchised by Cajun or its affiliates) operated by Franchisee in the same geographic area as the Franchised Restaurant, including control over the standards of operation and financial performance.
(3) The Operating Principal shall devote full-time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by Cajun or its affiliates) operated by Franchisee in the same geographic area as the Franchised Restaurant and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
(4) The Operating Principal shall maintain his or her primary residence within a reasonable driving distance of at least one of Franchisee's franchised Church's Restaurants.
(5) The Operating Principal shall successfully complete the NFOP (if it has not previously done so) and the MIT Program and any additional training required by Cajun.
(6) Cajun shall have approved the Operating Principal and not have later withdrawn that approval.
(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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 49–50)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the Operating Principal must maintain their primary residence within a reasonable driving distance of at least one of the franchisee's franchised Churchs Chicken restaurants.
This requirement ensures that the Operating Principal can effectively manage and supervise the day-to-day operations of the restaurant. By living close to the restaurant, the Operating Principal can be readily available to address any issues, provide support to the staff, and maintain the standards of operation.
The FDD specifies that the Operating Principal must devote full-time and best efforts to supervising the operation of the franchised restaurant and those other restaurants (that are franchised by Cajun or its affiliates) operated by the franchisee in the same geographic area as the franchised restaurant. They also cannot engage in any other business or activity that requires substantial management responsibility. This residency requirement reinforces the commitment to having a dedicated and accessible leader for each Churchs Chicken location.