After termination or expiration of a Churchs Chicken franchise agreement, what evidence must the franchisee furnish to Cajun, and within what timeframe?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) Franchisee, all individuals who executed this Agreement, and all guarantors of Franchisee's obligations shall have executed a general release and a covenant not to sue, in a form satisfactory to Cajun, of any and all Claims (as defined in Section 16) against Cajun and its affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities, including, without limitation, Claims arising under any law or regulation, and Claims arising out of, or relating to, this Agreement, any other agreements between Franchisee and Cajun or its affiliates and Franchisee's operation of the Franchised Restaurant, other Church's Restaurants operated by Franchisee and all other restaurants operated by Franchisee that are franchised by Cajun or its affiliates.
(f) As determined by Cajun in its sole discretion, Franchisee
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee, individuals who executed the agreement, and all guarantors must execute a general release and a covenant not to sue. This release and covenant must be in a form satisfactory to Cajun, covering any and all claims against Cajun, its affiliates, and their respective officers, directors, shareholders, agents, and employees. These claims include those arising under any law or regulation, or relating to the franchise agreement, other agreements between the franchisee and Cajun, and the franchisee's operation of the franchised restaurant.
Additionally, the franchisee must return the Manual, any copies of the Manual, and all other materials and information furnished by Cajun or its affiliates. The exception to this is materials and information furnished with respect to a Franchised Restaurant which is open and operating pursuant to an effective franchise agreement.
The FDD does not specify a particular timeframe within which the franchisee must furnish these items to Cajun. A prospective franchisee should seek clarification from Churchs Chicken regarding the specific deadlines for fulfilling these post-termination obligations to ensure compliance and avoid potential disputes.