What right is granted to the franchisee under the Churchs Chicken Development Agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to a Franchise Agreement, you must sign a Development Agreement regardless of the number of Restaurants you commit to develop. A copy of our standard Development Agreement is attached as Exhibit G. Under the Development Agreement, you are granted the right and you accept the responsibility to develop a specific number of Restaurants in a specific geographic area (the "Development Area"). In some instances, we will sign an Amendment to the Development Agreement which provides limited exclusivity for the Development Area. A copy of our standard Amendment to Development Agreement is attached as Exhibit H. The Development Agreement also specifies the number of Restaurants that you must open and operate and the dates by which they must open and be in operation in a development schedule (the "Development Schedule") to the Development Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–10)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, in addition to a Franchise Agreement, franchisees must sign a Development Agreement, regardless of the number of restaurants they commit to develop. Under the Development Agreement, Churchs Chicken grants the franchisee the right and responsibility to develop a specific number of restaurants in a specific geographic area, referred to as the "Development Area." In some cases, Churchs Chicken will sign an Amendment to the Development Agreement, which provides limited exclusivity for the Development Area.
The Development Agreement also specifies the number of Churchs Chicken restaurants that the franchisee must open and operate, along with the dates by which they must be open and in operation. This is outlined in a development schedule, known as the "Development Schedule," which is attached to the Development Agreement.
Prospective Churchs Chicken franchisees should carefully review the Development Agreement and its Development Schedule to fully understand their obligations regarding the number of restaurants they must open and the timeline for doing so. They should also inquire about the possibility of obtaining limited exclusivity for their Development Area through an Amendment to the Development Agreement.