What is the Transfer fee for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Tax Reimbursement | If any taxes, fees or assessments are imposed on us by reason of our acting as franchisor or licensing proprietary marks to you, then you must reimburse us that amount | 30 days after receipt of invoice | |
| Advertising Fund Contribution | 5% of Gross Sales (up to 1% of Gross Sales if a Regional Co-Op has been formed, plus contribution to Co-Op) and at least $25,000/year | Same as Royalty | |
| Digital and Technology Fees | Then-current amount. Beginning on July 15, 2024, about $205 per period ($2,665 annually) plus 5% of first party digital sales. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the standard transfer fee is $10,000. This fee is due upon the transfer of the franchise. However, if a transfer is made in violation of the Franchise Agreement, Churchs Chicken may charge an unauthorized transfer fee of $25,000.
For a prospective franchisee, this means that if they decide to sell their Churchs Chicken franchise to another party, they will typically need to pay Churchs Chicken a $10,000 transfer fee. This covers Churchs Chicken's administrative costs and review of the potential new franchisee. It is important to ensure that any transfer is done in full compliance with the terms of the Franchise Agreement to avoid the significantly higher unauthorized transfer fee of $25,000.
Franchise transfer fees are a common practice in the franchise industry. They are designed to compensate the franchisor for their time and expenses in approving the transfer and ensuring that the new franchisee meets their standards. The transfer fee can vary widely depending on the brand, but Churchs Chicken's fee appears to be within a typical range. It is important for franchisees to factor this cost into their decision-making when considering selling their franchise.