For subsequent Franchised Restaurants, does the Developer always execute Churchs Chicken's then-current standard form of Franchise Agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
For all subsequent Franchised Restaurants, Developer shall, at Cajun's option, execute Cajun's then-current standard form of Franchise Agreement in general use at the time of Cajun's notice to Developer of Cajun's acceptance of the proposed site for the Franchised Restaurant, within 30 days after acceptance (but, if applicable, after expiry of the applicable waiting period following delivery of a franchise disclosure document).
For the purpose of entering into Franchise Agreements, Cajun agrees that Developer may organize one or more wholly-owned subsidiaries or one or more affiliates with ownership structures identical to that of Developer, and such entity may be the franchisee entity.
Cajun acknowledges that if Developer opens a Franchised Restaurant using such an entity as the franchisee entity, Cajun shall consider Developer's development obligation for that Franchised Restaurant to be satisfied.
- **E.
Proof of Ownership, Lease or Sublease.** Within 90 days after Cajun accepts the Authorized Site, Developer shall submit to Cajun's satisfactory proof that Developer: (1) owns the Authorized Site; or (2) has leased or subleased the Authorized Site for a term, including renewal terms, for at least the initial term of the Franchise Agreement; or (3) has entered into a written agreement to purchase or to lease or sublease the Authorized Site on terms provided in Section 5.F., subject only to obtaining necessary governmental permits.
Developer (and the landlord) must execute the then-current form addendum to the lease agreement.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, for all subsequent franchised restaurants, the Developer will execute Churchs Chicken's then-current standard form of Franchise Agreement. This agreement will be in general use at the time of Churchs Chicken's notice to the Developer of Churchs Chicken's acceptance of the proposed site for the Franchised Restaurant.
The Developer must execute the Franchise Agreement within 30 days after acceptance of the proposed site. This timeline may be affected by any applicable waiting period following the delivery of a franchise disclosure document. Churchs Chicken agrees that the Developer can organize wholly-owned subsidiaries or affiliates with identical ownership structures to act as the franchisee entity for entering into Franchise Agreements.
Churchs Chicken acknowledges that if the Developer uses such an entity as the franchisee, Churchs Chicken will consider the Developer's development obligation for that Franchised Restaurant to be satisfied. This means the developer can create a separate business entity to hold the franchise agreement, but it doesn't relieve the developer of their overall development obligations.
Within 90 days after Churchs Chicken accepts the Authorized Site, the Developer must submit satisfactory proof of ownership, lease, or sublease. If leasing or subleasing, the term must cover at least the initial term of the Franchise Agreement. The Developer (and the landlord) must also execute the then-current form addendum to the lease agreement.