factual

Does Churchs Chicken have any restrictions on their right to transfer the Franchise Agreement?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 50–55)

What This Means (2025 FDD)

The 2025 Churchs Chicken Franchise Disclosure Document includes state-specific addenda that address franchise transfer restrictions. For example, in Washington, transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer. These state laws modify the general transfer provisions outlined in the standard franchise agreement.

In practical terms, this means a Churchs Chicken franchisee needs to be aware of their state's specific franchise laws regarding transfer. These laws can impact the fees the franchisor can charge for a transfer and the conditions under which a transfer can be restricted. The FDD highlights that the standard agreement is subject to these state laws, meaning the franchisee's rights and obligations regarding transfer can vary depending on their location.

Prospective franchisees should carefully review the state-specific addenda in the FDD, particularly those applicable to their state. It would be prudent to consult with a franchise attorney to fully understand how state laws might affect the transfer of their Churchs Chicken franchise and what rights they have in the transfer process.

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.