Are Churchs Chicken restaurants owned by the Company required to contribute to the advertising fund?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
t (determined on a first-in, first-out basis) or net realizable value.
Advertising Funds
'The Company's franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees, including all franchisees in Puerto Rico, require participation and contributions of a percentage of their gross sales to an advertising fund administered by Church's Chicken Advertising Fund (the Fund).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, restaurants owned by the company are required to contribute to the advertising fund. The franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees, including all franchisees in Puerto Rico, mandate participation and contributions to the Church's Chicken Advertising Fund.
This means that company-owned restaurants contribute to the advertising fund on the same basis as franchisees. The standard contribution is 5% of the restaurant's gross sales each week. However, Churchs Chicken may require a minimum annual contribution of $25,000. There is an exception where company-owned restaurants may contribute a greater percentage of gross sales than franchisees.
This policy ensures that both franchised and company-owned locations support the brand's marketing efforts through consistent contributions to the advertising fund. Prospective franchisees should be aware of this advertising contribution requirement, as it impacts their operating costs and overall financial performance.