What is the timeframe allowed for a Churchs Chicken franchisee to develop the minimum number of restaurants to qualify for the Platinum Incentive Plan?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to encourage the development of new franchised Church's Texas Chicken restaurants by franchisees who satisfy Cajun's financial requirements for new development, Cajun has implemented a development incentive program (the "Platinum Incentive Plan") for franchised Church's Texas Chicken restaurants ("Franchised Restaurants") that are developed pursuant to a Church's Texas Chicken Development Agreement that provides for the development of a minimum of five Franchised Restaurants within 5 years (the "Development Agreement").
- A. In order to be eligible for the Platinum Incentive Plan, Developer must open its first Franchised Restaurant no later than one year following the date of the Development Agreement (the "First Restaurant Deadline"). If Developer fails to open its first Franchised Restaurant by the First Restaurant Deadline, Developershall not be entitled to receive any benefits under the Platinum Incentive Plan.
- B. If the first Franchised Restaurant is developed in accordance with Section 1.A., the Platinum Incentive Plan benefits set forth in this Addendum shall apply to the second through fifth Franchised Restaurants that Developer opens in full compliance with the Development Schedule and the Development Agreement (each an "Eligible Restaurant"); provided that each Franchised Restaurant is opened by Developer by no later than one year after the opening date of the immediately prior Franchised Restaurant.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the Platinum Incentive Plan is designed to encourage franchisees to develop new Churchs Texas Chicken restaurants, provided they meet the company's financial requirements for new development. To qualify for the Platinum Incentive Plan, a franchisee must commit to developing a minimum of five franchised restaurants within a 5-year period under a Development Agreement.
To remain eligible for the Platinum Incentive Plan, the franchisee must open their first Churchs Chicken restaurant no later than one year following the date of the Development Agreement. Failure to meet this deadline disqualifies the franchisee from receiving any benefits under the Platinum Incentive Plan.
If the franchisee successfully opens the first restaurant within the stipulated time, the Platinum Incentive Plan benefits will apply to the subsequent second through fifth restaurants. However, each of these restaurants must be opened no later than one year after the opening date of the immediately preceding restaurant to remain compliant with the Development Schedule and the Development Agreement.