What training programs are required for the Operating Principal of a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
any guarantor to provide personal financial statements to Cajun from time to time.
- (2) With respect to 5% Owners, Franchisee acknowledges that, unless otherwise agreed to in writing by Cajun, it is Cajun's intent to have individuals (and not corporations, limited liability companies or other entities) execute the Guaranty. Accordingly, if any 5% Owner is not an individual, Cajun shall have the right to have the Guaranty executed by individuals who have only an indirect ownership interest in Franchisee.
- (3) If Franchisee, any guarantor or any parent, subsidiary or affiliate of Franchisee holds any interest in other restaurants that are franchised by Cajun or its affiliates, the party who owns that interest shall execute, concurrently with this Agreement, a form of cross-guarantee to Cajun and its affiliates for the payment of all obligations for such restaurants, unless waived in writing by Cajun in its sole discretion.
- G. Operating Principal. Franchisee shall designate and retain an individual to serve as the "Operating Principal." The Operating Principal as of the date of this Agreement is identified in Schedule 2. Unless waived in writing by Cajun, the Operating Principal shall meet all of the following qualifications:
- (1) The Operating Principal, at all times, shall have at least a 10% equity ownership interest in Franchisee (unless Franchisee is a publicly-held entity or a wholly-owned subsidiary of a publicly-held entity).
- (2) The Operating Principal, at all times, shall be a member of the Continuity Group and, at a minimum, have full control over the day-to-day activities, including operations, of the Franchised Restaurant and those other restaurants (that are franchised by Cajun or its affiliates) operated by Franchisee in the same geographic area as the Franchised Restaurant, including control over the standards of operation and financial performance.
- (3) The Operating Principal shall devote full-time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by Cajun or its affiliates) operated by Franchisee in the same geographic area as the Franchised Restaurant and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
- (4) The Operating Principal shall maintain his or her primary residence within a reasonable driving distance of at least one of Franchisee's franchised Church's Restaurants.
- (5) The Operating Principal shall successfully complete the NFOP (if it has not previously done so) and the MIT Program and any additional training required by Cajun.
- (6) Cajun shall have approved the Operating Principal and not have later withdrawn that approval.
- (7) If the Operating Principal no longer qualifies as such, Franchisee shall designate another qualified person to serve as Operating Principal within 30 days after the date the prior Operating Principal ceases to be qualified. Franchisee's designee to become the Operating Principal must successfully complete the MIT Program and the NFOP. Following Cajun's approval of a new Operating Principal, that person shall execute the attached form of Guaranty unless waived by Cajun in its sole discretion.
14. TRANSFERS BY CAJUN
Cajun shall have the absolute, unrestricted right, exercisable at any time, to transfer and assign all or any part of its rights and obligations under this Agreement to any person or entity and to undergo a change in ownership and control, without the consent of Franchisee.
15. TRANSFERS BY FRANCHISEE
**A.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 49–50)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the Operating Principal must complete two training programs: the New Franchisee Orientation Program (NFOP) and the Manager-in-Training (MIT) Program. The NFOP is a 2-day program held at a training facility designated by Cajun Global LLC. The franchisor covers the administrative expenses for the NFOP, but the franchisee is responsible for travel, living, and other expenses for the Operating Principal and employees attending the training.
The MIT Program is also mandatory for the Operating Principal. Furthermore, the Operating Principal must meet specific qualifications, including maintaining at least a 10% equity ownership in the franchise (unless the franchisee is a publicly-held entity), being a member of the Continuity Group, and having full control over the day-to-day operations and financial performance of the franchised restaurant. The Operating Principal must also devote full-time efforts to supervising the restaurant and cannot engage in other business activities that demand substantial management responsibility.
If an Operating Principal does not meet the requirements, the franchisee has 30 days to designate a qualified replacement. The new Operating Principal must also successfully complete the MIT Program and the NFOP. Cajun Global LLC must approve the Operating Principal, and this approval cannot be withdrawn later. After the approval of a new Operating Principal, that person must execute a form of Guaranty, unless Cajun waives this requirement.