Under what circumstances can Cajun resolve customer complaints for a Churchs Chicken franchisee and charge the franchisee for the associated costs?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisee shall immediately resolve any customer complaints regarding the quality of food or beverages, service and/or cleanliness of the Franchised Restaurant or any similar complaints. When any customer complaints cannot be immediately resolved, Franchisee shall use best efforts to resolve the customer complaints as soon as practical. If Cajun, in its sole discretion, determines that its intervention is necessary or desirable to protect the System or the goodwill associated with the System or if Cajun, in its sole discretion, believes that Franchisee has failed adequately to address or resolve any customer complaints, Cajun may, without Franchisee's consent, resolve any complaints and charge Franchisee an amount sufficient to cover Cajun's reasonable costs and expenses in resolving the customer complaints, which amount Franchisee shall pay Cajun immediately on demand.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, Cajun, the franchisor, has the authority to intervene in customer complaint resolution under specific circumstances. Initially, the franchisee is responsible for immediately resolving customer complaints related to food quality, service, or cleanliness. If immediate resolution isn't possible, the franchisee must make their best effort to resolve the issue as soon as practical.
However, Cajun reserves the right to step in if they determine it's necessary to protect the Churchs Chicken system's reputation or goodwill. This intervention can occur if Cajun believes the franchisee has not adequately addressed or resolved customer complaints. In such cases, Cajun, without the franchisee's consent, can resolve the complaints themselves.
If Cajun intervenes, the franchisee will be charged an amount sufficient to cover Cajun's reasonable costs and expenses incurred in resolving the customer complaints. The franchisee is obligated to pay this amount to Cajun immediately upon demand. This clause highlights the importance of franchisees effectively managing customer service and complaint resolution to avoid potential intervention and associated costs from the franchisor.