What responsibility does a Churchs Chicken franchisee accept under the Development Agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to a Franchise Agreement, you must sign a Development Agreement regardless of the number of Restaurants you commit to develop. A copy of our standard Development Agreement is attached as Exhibit G. Under the Development Agreement, you are granted the right and you accept the responsibility to develop a specific number of Restaurants in a specific geographic area (the "Development Area"). In some instances, we will sign an Amendment to the Development Agreement which provides limited exclusivity for the Development Area. A copy of our standard Amendment to Development Agreement is attached as Exhibit H. The Development Agreement also specifies the number of Restaurants that you must open and operate and the dates by which they must open and be in operation in a development schedule (the "Development Schedule") to the Development Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–10)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, in addition to a Franchise Agreement, franchisees must sign a Development Agreement, regardless of the number of restaurants they commit to develop. Under the Development Agreement, the franchisee is granted the right and accepts the responsibility to develop a specific number of Churchs Chicken restaurants in a specific geographic area, known as the Development Area. In some cases, an Amendment to the Development Agreement may provide limited exclusivity for the Development Area.
The Development Agreement also specifies the number of Churchs Chicken restaurants that the franchisee must open and operate, along with the dates by which these restaurants must be opened and in operation. This schedule is detailed in the Development Schedule, which is part of the Development Agreement.
In summary, the Development Agreement legally binds the Churchs Chicken franchisee to a development schedule, obligating them to open and operate a pre-determined number of restaurants within a defined geographic area by specific dates. This commitment is a significant undertaking, requiring careful planning, substantial capital investment, and adherence to the agreed-upon timeline. Prospective franchisees should carefully review the Development Agreement and Development Schedule to fully understand their obligations and ensure they have the resources and capabilities to meet these requirements.