table_specific

What is the section number related to the Initial Franchise for Churchs Chicken that has a sentence added to the end of it?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

This Addendum to the Church's Texas Chicken Franchise Agreement dated
("Franchise Agreement") between
CAJUN
GLOBAL
LLC,
d/b/a
Church's Texas Chicken
a
Delaware
limited liability company ("Cajun"),
and
,
a
formed
in
("Franchisee")
is
entered
into
simultaneously
with
the
execution
of
the
Franchise
Agreement.
(Transfer 1. Conditions) The following sentence is added to the end of Sections 2.B.(2)(e) (Renewal Term), 15.C.(4) and 16 (General Release) of the Agreement:
This Disclosure release shall not apply to any liability under the Maryland Franchise Registration and Law.
Agreement: 2. The following
sentence
is
added
to
the
end
of
Sections
3.A.
(Initial
Franchise
Fee)
of
the
the the Notwithstanding the foregoing, in the State of Maryland, Cajun will defer the payment of franchise fee until the Franchised Restaurant opens for business. Upon the opening of Franchised Restaurant, Franchisee shall pay to Cajun the franchise fee.

Source: Item 22 — CONTRACTS (FDD pages 67–68)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, Section 3.A, regarding the Initial Franchise Fee, has a sentence added to the end of it. This modification is specifically applicable in the state of Maryland.

Specifically, Churchs Chicken will defer the payment of the franchise fee for franchisees in Maryland until the franchised restaurant opens for business. Upon the restaurant's opening, the franchisee is then obligated to pay the franchise fee to Cajun Global LLC, the franchisor.

This deferral of the initial franchise fee could be a significant benefit for prospective Churchs Chicken franchisees in Maryland, as it reduces the upfront investment required to start the business. It allows the franchisee to allocate those funds to other essential startup costs, such as location build-out, equipment, and initial operating expenses. However, franchisees should be aware that the fee will become due immediately upon opening and should plan accordingly.

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.
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