What responsibility does a Churchs Chicken franchisee accept under the Franchise Agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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Each Restaurant is operated under a Franchise Agreement. A copy of our standard Franchise Agreement is attached as Exhibit C. Under the Franchise Agreement, we grant you the right (and you accept the responsibility) to operate a Restaurant. You must operate the Restaurant under the Proprietary Marks.
You must also operate the Restaurant under the System and our business and operating procedures, which we describe in our Operations Manual (together with any other manuals created or approved for use in the operation of Church's Restaurants, and all amendments and updates, the "Manual"). The System includes specially designed buildings; distinctive interior and exterior layouts, décor, color schemes, and furnishings; confidential food formulas and recipes used in the preparation of food products and, particularly, a unique seasoning and batter formula for preparing Church's fried chicken; specialized menus; and standards and specifications for equipment, equipment layouts, products, operating procedures, employee training, and management programs. You cannot offer menu items that are not part of the System without our approval. We anticipate continued improvement of the System and will provide new information and techniques to you by means of the Manual.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–10)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, as part of the Franchise Agreement, the franchisee accepts the responsibility to operate a Churchs Chicken restaurant. This operation must be conducted under the Proprietary Marks, which include the Church's®, Church's Chicken® and Church's Texas Chicken® trade names, service marks and other trademarks.
Furthermore, the franchisee is obligated to operate the restaurant in accordance with the Churchs Chicken System and the franchisor's business and operating procedures, as detailed in the Operations Manual. The System encompasses various elements, including building design, interior and exterior layouts, décor, color schemes, furnishings, confidential food formulas and recipes (particularly the unique seasoning and batter for Church's fried chicken), specialized menus, and standards for equipment, products, operating procedures, employee training, and management programs. Franchisees must obtain approval from Churchs Chicken before offering any menu items that are not part of the established System.
In addition to the Franchise Agreement, franchisees must sign a Development Agreement, regardless of the number of restaurants they commit to develop. This agreement grants the franchisee the right and responsibility to develop a specific number of restaurants within a defined geographic area, known as the Development Area, according to a Development Schedule. In some cases, an Amendment to the Development Agreement may provide limited exclusivity for the Development Area. Franchisees may also be required to sign a Sublease if Churchs Chicken subleases the restaurant premises to them.
Finally, franchisees must comply with all applicable local, state, and federal laws pertaining to restaurant operations. These include regulations related to health and safety, sanitation, no smoking policies, PCI (payment card industry) requirements, employment laws, and caloric and salt content disclosures. Franchisees should also expect to compete with other fast-food restaurants, carry-out establishments, and grocery/deli offerings that feature similar menu items, as well as restaurants offering other types of chicken entrees and foods.