What is the royalty fee for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Development Schedule Extension Fee | $5,000 for each Development Schedule extension of 5 months – if extending opening date and open within the extended time period, the extension fee will be credited to the Franchise Fee; if extending site approval date, no credit | On our approval of any Development Schedule Extension | We reserve the right, in our sole discretion, to grant one or more Development Schedule Extensions to site approval date and/or opening date. |
| Royalty2 | 5% of Gross Sales | Within 5 business days after the end of each fiscal week. | See Note 2 below. See Item 5 for summary of the Platinum Incentive Plan and incentives offered. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the standard royalty fee is 5% of Gross Sales. This royalty fee is due within 5 business days after the end of each fiscal week. Gross Sales includes all revenue from the sale of services and products, and all other income related to the Franchised Restaurant.
Churchs Chicken requires franchisees to participate in an electronic funds transfer program, authorizing the company to use a pre-authorized bank draft system for payments. This means franchisees must designate an account at a commercial bank and provide the necessary authorizations for electronic withdrawals. This ensures that Churchs Chicken receives all royalty fees and other amounts owed, including advertising contributions and interest charges, promptly.
It's important to note that Churchs Chicken may increase the royalty fee by 1% of Gross Sales if a franchisee is in default under the Franchise Agreement. This Default Royalty is also due within 5 business days after the end of each fiscal week. Additionally, the FDD mentions a Platinum Incentive Plan, which may offer incentives related to the royalty fee, as summarized in Item 5.