factual

Are Churchs Chicken restaurants owned by the Parent Company required to contribute to the advertising fund?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

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, all restaurants owned by the Parent Company are required to participate and 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 contributions to the Church's Chicken Advertising Fund. This requirement ensures that all stakeholders, including the Parent Company, contribute to the advertising efforts that support the brand.

This advertising fund is administered by Church's Chicken Advertising Fund. The contribution is determined as a percentage of their gross sales. This arrangement ensures that the advertising fund receives consistent financial support from all participating restaurants, which is then used to promote the Churchs Chicken brand and support marketing initiatives.

For a prospective franchisee, this means that restaurants owned by the Parent Company also bear the same responsibility of contributing to the advertising fund, aligning their interests with those of the franchisees. This can be seen as a positive aspect, as it ensures that the Parent Company is equally invested in the brand's marketing and advertising strategies. This also means that the advertising fund receives contributions from a wider base, potentially increasing the resources available for marketing and promotional activities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.