Does Churchs Chicken have the right to review and approve the premises that a franchisee chooses for their Churchs Chicken Restaurant?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Development Agreement, you must obtain the right to occupy the premises at which you will operate each Restaurant. We have the right to review and approve these premises. You will generally have the option to buy, lease, or sublease the premises, depending on market conditions. If you lease or
sublease the premises, we have the right to review and approve the lease or sublease. We may require the lease or sublease to contain the following terms, among others, before we will give our approval: (1) if you default under the lease/sublease, orstop operating the Restaurant for any reason, we have the right to assume your rights and obligations under the lease/sublease; (2) if you default under the lease/sublease, we must receive a copy of any notice of the default; and (3) if you default under your lease/sublease or stop operating the Restaurant, we may modify the premises as necessary to enforce the covenants against competition and the other post-termination obligations under the Franchise Agreement that are noted in Item 17 below. You must use our form of Addendum to Lease Agreement attached as Exhibit R.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–34)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, Churchs Chicken retains the right to review and approve the premises a franchisee selects for their restaurant. The franchisee is responsible for securing the rights to occupy the premises, and Churchs Chicken has the right to approve these premises.
As a prospective franchisee, this means that your choice of location is subject to Churchs Chicken's approval. You generally have the option to buy, lease, or sublease the premises, depending on market conditions. If you choose to lease or sublease, Churchs Chicken also has the right to review and approve the lease or sublease agreement.
Churchs Chicken may also require specific terms in the lease or sublease, including the right to assume the franchisee's rights and obligations if the franchisee defaults or stops operating the restaurant. They may also require notification of any default and the ability to modify the premises to enforce covenants against competition and other post-termination obligations. Franchisees must use Churchs Chicken's standard Addendum to Lease Agreement.