Under what circumstances does Cajun modify a Churchs Chicken Development Agreement via an addendum?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
_392_Picture_0.jpeg)
Addendum, which shall memorialize the Royalty Fee Reduction benefits of the Platinum Incentive Plan.
- 3. Termination. This Addendum, and the development incentives offered pursuant to this Addendum, shall terminate following written notice to Developer upon the occurrence of any of the following events during the Development Incentive Period:
- A. Developer fails to open the first Franchised Restaurant under the Development Agreement by the First Restaurant Deadline;
- B. Developer fails to open its second or any additional Franchised Restaurant within twelve months following the opening date of the previous Franchised Restaurant opened by Developer under the Development Agreement;
- C. Developer fails to meet any Site Acceptance Date or Opening Date for any Franchised Restaurant required to be developed under the Development Agreement; or
- D. Developer receives a written notice of default under the Development Agreement or any other agreement with Cajun or its affiliates and fails to cure the default within the applicable cure period, if any.
- 4. Effect of Termination. If this Addendum is terminated, Developer shall not receive any further development incentives with respect to any additional Franchised Restaurants developed under the Development Agreement and any open and operating Franchised Restaurant that received a reduced royalty rate as a development incentive shall immediately revert to a 5% royalty rate.
- 5. Capitalized Terms. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Development Agreement.
- 6. Limited Modification. Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect.
- 7. Counterparts. This Addendum may be executed in counterparts, and each copy so executed and delivered shall be deemed to be an original. Any signature by email or facsimile shall be binding.
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the day and year first above written.
CAJUN: CAJUN GLOBAL LLC DEVELOPER:
FORM OF DEVELOPMENT INCENTIVE ADDENDUM ("Platinum Incentive Plan) TO CHURCH'S TEXAS CHICKEN FRANCHISE AGREEMENT
| THIS DEVELOPMENT Chicken Franchise Agreement Global LLC ("Cajun") and 202 | INCENTIVE ADDENDUM ("Addendum") to the Church's Texas dated as of ("Franchise Agreement") between Cajun ("Franchisee") is entered into as of the day of , | |
|---|---|---|
| RECITALS | ||
| Pursuant to the Franchise franchised Church's Texas Chicken Restaurant"). | Agreement, Cajun granted Franchisee the right to develop and operate a restaurant located at (the "Franchised | |
| In order to encourage has implemented a development Chicken Development |
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, Cajun Global LLC may modify a Development Agreement through an addendum to provide franchisees with the Platinum Incentive Plan benefits. This occurs when a franchisee meets the criteria for the Platinum Incentive Plan, which is designed to encourage the development of franchised Churchs Chicken restaurants.
Specifically, the addendum modifies certain provisions of the Franchise Agreement to reflect the Platinum Incentive Plan. One key modification is setting the Initial Franchise Fee to $0.00. Additionally, the addendum provides a reduced royalty fee schedule for the first five years the franchised restaurant is open.
The royalty fee structure under the Platinum Incentive Plan is 0% for the first year, 2% for the second year, 3% for the third year, 4% for the fourth year, and 5% for the fifth year and thereafter. This incentive aims to support franchisees in the initial stages of their restaurant operations by reducing their financial burden, thereby fostering growth and development within the Churchs Chicken system.