Are Churchs Chicken restaurants under construction as of the date of the Franchise Agreement excluded from the limited exclusivity granted to the Franchisee?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Church's Restaurants located in the Protected Area (a) that are under construction or open for business as of the date of this Agreement or (b) for which a Church's Franchise Agreement has been executed are excluded from the limited exclusivity granted to Franchisee.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the limited exclusivity granted to a franchisee is subject to certain exclusions. Specifically, Churchs Chicken restaurants that are either under construction or already open for business as of the date of the Franchise Agreement are excluded from this limited exclusivity. Additionally, any Churchs Chicken restaurant for which a Franchise Agreement has already been executed is also excluded.
This means that a new Churchs Chicken franchisee's protected area may already contain existing or soon-to-be-open Churchs Chicken locations. The franchisee will not have exclusive rights against these pre-existing or in-progress restaurants. This is a crucial consideration for prospective franchisees as it directly impacts the potential market share and revenue they can expect in their protected area.
It is important for potential Churchs Chicken franchisees to carefully review Schedule 1 of the Franchise Agreement, which defines the Protected Area, and to understand the locations of any existing or planned Churchs Chicken restaurants within that area. This understanding will help them assess the true potential of the franchise and make informed decisions about their investment. Franchisees should also confirm with Churchs Chicken the current status of any locations under construction to fully grasp the competitive landscape they will be entering.