For Churchs Chicken, what restaurant-level costs are considered 'controllables' and affected by management decisions?

According to Churchs Chicken's 2025 Franchise Disclosure Document, 'controllables' are defined as miscellaneous restaurant-level costs that are affected by or decided by management. An example provided in the FDD is the cost of maintenance and repair. These costs are distinct from 'non-controllables,' which are miscellaneous restaurant-level costs where the owner has no decision-making ability, such as the cost of local operating permits. Rent is specifically excluded from the non-controllables category.

The FDD includes a table presenting historical average income statements for domestic free-standing company and franchised restaurants. In this table, 'Controllables' are listed as 13.8% of sales for the total average, with a high of 11.6%, a median of 13.9%, and a low of 18.0%. The 'Controllable Profit Margin' is also provided, showing a total average of 28.9%, with a high of 36.3%, a median of 27.9%, and a low of 17.2%. These figures are based on data from 576 restaurants with drive-thrus as of December 31, 2024.

For a prospective Churchs Chicken franchisee, understanding the distinction between controllable and non-controllable costs is crucial for effective financial management. By focusing on managing controllable costs, such as maintenance and repair expenses, franchisees can directly impact their restaurant's profitability. The provided data offers a benchmark for franchisees to compare their own performance against, highlighting areas where they may be able to improve efficiency and reduce costs. However, franchisees should also consider that these figures are based on historical data and may not be indicative of future performance due to various factors, including local market conditions and individual management skills.