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What standards of conduct must a Churchs Chicken franchisee adhere to in all dealings?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (1) Franchisee shall secure and maintain in force in its name all required licenses, permits, certificates and other governmental authorizations relating to the operation of the Franchised Restaurant. Franchisee shall operate the Franchised Restaurant in compliance with all applicable laws and regulations, including, without limitation, all laws or regulations relating to the handling of food products, immigration and discrimination, occupational hazards and health insurance, employment laws, workers' compensation insurance, unemployment insurance, withholding and payment of federal and state income, social security, Medicare, sales and other taxes, and payment of sales taxes. All advertising and promotion by Franchisee shall be completely factual and shall conform to the highest standards of ethical advertising. Franchisee shall, in all dealings, adhere to the highest standards of honesty, integrity, fair dealing and ethical conduct. Franchisee shall refrain from any business or advertising practice that may be injurious to the goodwill associated with the Proprietary Marks or the business of Cajun or its affiliates, the System or other restaurants operated or franchised by Cajun or its affiliates.
  • (2) Franchisee shall notify Cajun in writing within 5 days after the commencement of: (a) any legal or judicial action, suit or proceeding, or the issuance of any order, writ, injunction, award or decree of any court, agency or other governmental authority, which may adversely affect the operation or financial condition of Franchisee or the Franchised Restaurant; or (b) of any notice of violation of any law, ordinance or regulation relating to health or sanitation at the Franchised Restaurant.

Source: Item 23 — RECEIPT (FDD pages 68–406)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees must adhere to specific standards of conduct in all their business dealings. Franchisees are expected to maintain the highest levels of honesty, integrity, fairness, and ethical behavior in every aspect of their operations. This encompasses all interactions with customers, employees, suppliers, and the franchisor, Cajun.

In addition to these ethical standards, Churchs Chicken franchisees must comply with all applicable laws and regulations. This includes securing and maintaining all necessary licenses, permits, and governmental authorizations required to operate the franchised restaurant. Compliance extends to laws and regulations concerning food handling, immigration, discrimination, occupational hazards, health insurance, employment, workers' compensation, unemployment insurance, and the payment of federal, state, and local taxes. Franchisees are also responsible for ensuring that all advertising and promotional activities are factual and adhere to the highest standards of ethical advertising.

Furthermore, franchisees are obligated to protect the goodwill associated with the Churchs Chicken brand. They must avoid any business or advertising practices that could harm the reputation of the proprietary marks, the franchisor, its affiliates, the Churchs Chicken system, or other franchised or company-operated restaurants. Franchisees are also required to notify Cajun within five days of any legal or judicial actions, suits, proceedings, or notices of violation that could adversely affect the operation or financial condition of the franchise or the restaurant. These comprehensive requirements ensure that all Churchs Chicken franchisees operate with integrity and in compliance with both legal and ethical standards.

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.