When are royalty fees due for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
a particular franchisee.
ITEM 6 OTHER FEES
| 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. |
| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Tax Reimbursement | If any taxes, fees or assessments are imposed on us by reason of our acting as franchisor or licensing proprietary marks to you, then you must reimburse us that amount | 30 days after receipt of invoice | |
| Advertising Fund Contribution | 5% of Gross Sales (up to 1% of Gross Sales if a Regional Co-Op has been formed, plus contribution to Co-Op) and at least $25,000/year | Same as Royalty |
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, which is 5% of Gross Sales, is due within 5 business days after the end of each fiscal week. Churchs Chicken requires franchisees to participate in an electronic funds transfer program, meaning that all royalty fees and other amounts owed, including advertising contributions and interest charges, must be received or credited to Churchs Chicken's account before 5:00 p.m. on the fifth business day after the end of each fiscal week.
In the event of a default under the Franchise Agreement, Churchs Chicken may increase the royalty fee by 1% of Gross Sales, which is payable within 5 business days after the end of each fiscal week.
Additionally, if a Churchs Chicken restaurant is temporarily closed for relocation or due to a force majeure event, a minimum royalty fee is imposed. This fee is equivalent to the average weekly royalty owed during the 52 weeks before the closure, multiplied by the number of weeks (or partial weeks) the restaurant is not in operation. This minimum royalty is due upon the re-opening of the restaurant.