factual

Is there a specific geographic area granted in the Churchs Chicken Development Agreement?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

The Development Agreement grants you a specific Development Area in which to establish and operate Restaurants under the System at specific locations to be designated in separate Franchise Agreements. You select the site of your Restaurant subject to our acceptance of the site. You must submit for our acceptance a Site Acceptance Request, in the form that we require, for the proposed site of each Restaurant you develop. We will evaluate each proposed site, and within 60 days after receipt of your complete proposal, we will send you written notice of our acceptance or non-acceptance of the site. We consider the following factors, among others, in evaluating the proposed site: demographic characteristics (such as the number of households in the neighborhood, average income and family size); traffic patterns; proximity to existing restaurants, including existing Restaurants, and the size, asset type, and condition of the proposed premises. Our acceptance of a proposed site is good for 90 days, during which time you must provide us with satisfactory evidence (such as a deed or signed lease) that you have the right to occupy the site. Our acceptance of a site is not our representation or promise that a Restaurant at that site will achieve a certain sales volume or level of profitability. Similarly, our acceptance of one or more sites and our nonacceptance of other sites is not our representation or promise that a site we accept will have a higher sales volume or be more profitable than a site we do not accept. Our acceptance only indicates our willingness to be represented by you at that site. If you lease or sublease the premises, we have the right to review and approve the lease or sublease, and you must use our form of Addendum to Lease Agreement attached as Exhibit R.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, the Development Agreement grants a specific Development Area to the franchisee. Within this area, the franchisee can establish and operate Churchs Chicken restaurants at locations approved by the franchisor. The specific locations are designated in separate Franchise Agreements.

Prospective franchisees must submit a Site Acceptance Request for each proposed restaurant site. Churchs Chicken evaluates these sites based on factors such as local demographics (number of households, income, family size), traffic patterns, proximity to existing restaurants (including other Churchs Chicken locations), and the size and condition of the proposed premises. The franchisor has 60 days to provide written notice of acceptance or non-acceptance.

It's important to note that Churchs Chicken's acceptance of a site does not guarantee any specific sales volume or profitability. The acceptance only indicates the franchisor's willingness to be represented at that location. If the franchisee leases or subleases the premises, Churchs Chicken retains the right to review and approve the lease or sublease, and the franchisee must use the franchisor's standard Addendum to Lease Agreement.

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.