Under what circumstances can Cajun terminate the Churchs Chicken franchise agreement without providing an opportunity to cure?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
l they apply to other restaurants operated by Franchisee that are franchised by Cajun or its affiliates. If a court finds that any restriction in Section 17.D. is not enforceable, it is the intent of the parties that the court modify such restriction to the extent reasonably necessary to protect the legitimate business interests of Cajun. If, at any time during the restrictive period following the transfer, expiration or earlier termination of this Agreement, Franchisee fails to comply with its obligations under this Section, that period of noncompliance will not be credited toward Franchisee's completion of the restrictive period provided that Cajun takes action to enforce the obligations under this Section within the restrictive period.
E. Modification. Cajun shall have the right, in its sole discretion, to reduce the extent of any covenant in this Section effective immediately upon Franchisee's receipt of notice, and Franchisee shall be bound by the covenant as so reduced, which shall be fully enforceable notwithstanding the provisions of Section 25.
18. TERMINATION
- A. Termination without Cure Period. Cajun may terminate this Agreement upon notice to Franchisee without an opportunity to cure upon the occurrence of any of the following events:
- (1) Franchisee fails to open the Franchised Restaurant for business.
- (2) Franchisee ceases operation of the Franchised Restaurant in breach of Section 17.A.
- (3) Execution is levied against Franchisee's business or property at the Franchised Location; suit to foreclose any lien or mortgage against the premises or equipment of the Franchised Restaurant is instituted against Franchisee and is not dismissed within 60 days; or the real or personal property of the Franchised Restaurant is sold after levy by any sheriff, marshal or other governmental authority.
- (4) Any Transfer applicable to the Franchised Location that requires Cajun's prior approval occurs without Franchisee having obtained that prior approval.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, Cajun may terminate the franchise agreement without giving the franchisee an opportunity to cure under several specific circumstances. These include failing to open the franchised restaurant for business or ceasing operations in breach of the agreement. Additionally, if there's a levy against the franchisee's business or property, a foreclosure suit that isn't dismissed within 60 days, or a sale of property after levy by a governmental authority, Cajun can terminate the agreement immediately.
Further reasons for immediate termination involve unauthorized transfers of the franchised location, situations where Cajun determines that the restaurant's continued operation poses an imminent threat to public health or safety, or if the franchisee loses possession of the location. Failure to have employees attend required training programs or the restaurant's failure to achieve a passing score on inspections after additional training also constitute grounds for termination without a cure period.
Finally, Churchs Chicken can terminate the agreement without a chance to cure if the franchisee knowingly serves food products from unapproved suppliers or products containing ingredients from unapproved suppliers. These stipulations are designed to ensure compliance with brand standards, protect public safety, and maintain the integrity of the Churchs Chicken system. Franchisees should be aware of these conditions to avoid potential termination of their franchise agreement.