After the termination or expiration of a Churchs Chicken Development Agreement, under what circumstances, if any, can the developer continue to operate under a name that might give the public the impression that they are connected with Cajun or have the right to use the Churchs Chicken system or proprietary marks?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
system that operates and/or franchises restaurants in the Development Area that are the same as, similar to or compete with Church's Restaurants in that they have a substantially similar menu or similar theme or concept; (e) merchandise and distribute products identified by some or all of the Proprietary Marks in the Development Area through any method or channel of distribution other than restaurants; (f) sell and distribute productsidentified by some or all of the Proprietary Marksin the Development Area to restaurants other than restaurants identified in whole or in part by the names and marks "Church's", "Church's Chicken" and "Church's Texas Chicken" provided those restaurants are not licensed to use the Proprietary Marks or the System in connection with their retail sales, and (g) sell and license others to sell products identified by some or all of the Proprietary Marks in the Development Area through temporary facilities in connection with any cultural, sporting, recreational, or other temporary event. Cajun reserves to itself all rights to use and license the System and Proprietary Marks other than those expressly granted under this Agreement.
- (2) Cajun may operate or license others to operate restaurants identified in whole or in part by the names and marks "Church's", "Church's Chicken" and "Church's Texas Chicken" in the Development Area.
- (3) Nothing in this Agreement shall prohibit Cajun or its affiliates from operating or licensing a restaurant at any location in or outside the Development Area.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, upon the termination or expiration of the Development Agreement, the developer is restricted from actions that might imply an ongoing association with Churchs Chicken. Specifically, the developer cannot operate or franchise restaurants with a similar menu, theme, or concept to Churchs Chicken within the Development Area. They are also prohibited from using Churchs Chicken's proprietary marks to sell or distribute products, except through Churchs Chicken-branded restaurants or at temporary events.
Churchs Chicken retains the right to operate or license others to operate Churchs Chicken restaurants within the Development Area after the agreement ends. The agreement explicitly states that nothing prevents Churchs Chicken or its affiliates from operating or licensing a restaurant at any location, whether inside or outside the Development Area.
These restrictions ensure that upon termination or expiration of the Development Agreement, the developer cannot leverage the Churchs Chicken brand or system to compete unfairly. This protects Churchs Chicken's brand identity, market position, and the integrity of its franchise system. A prospective franchisee should be aware of these limitations and plan accordingly for the end of their development agreement term.