Is a transfer of a Churchs Chicken franchise valid without Cajun's prior consent?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ing 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- (6) Cajun shall have approved the Operating Principal and not have later withdrawn that approval.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. Cajun's Prior Approval Required
- (1) Franchisee understands and acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that Cajun has entered into this Agreement in reliance on Franchisee's (and Operating Principal's) business skill, financial capacity, personal cha
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, a franchisee cannot transfer any interest in the franchise, the Franchise Agreement, the restaurant, its assets, or the location without first obtaining Cajun's consent. Cajun, as the franchisor, emphasizes that the agreement is based on the franchisee's skills, financial capacity, character, and ability to operate a high-quality foodservice operation.
Any transfer conducted without Cajun's prior consent is considered null and void. If a franchisee proceeds with a transfer without approval and Cajun subsequently accepts the new franchisee, the original franchisee must pay Cajun an unauthorized transfer fee of $25,000.
This requirement ensures that Churchs Chicken maintains control over who operates its franchises and upholds brand standards. It also protects the integrity of the franchise system by ensuring that new operators meet the franchisor's criteria for success. Prospective franchisees should be aware of these restrictions and the associated costs before considering a transfer of their franchise.