factual

Under what condition is Cajun required to provide a representative to be present at the opening of a Churchs Chicken franchised restaurant?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

  • **B.

First Franchised Restaurant.** If the Franchised Restaurant is Developer's first franchised Church's Restaurant, Cajun shall provide a representative to be present at the opening of the Franchised Restaurant.

Developershall not open the first Franchised Restaurant unless a Cajun representative is present and Developer has satisfied the pre-opening conditions identified below in Section 7.C.

  • **C.

Conditions to Opening.** Developer shall not open a Franchised Restaurant unless all of the following conditions have been met:

  • (1) Developer and its affiliates are not in default under this Agreement or any other agreements with Cajun or its affiliates; Developer and its affiliates are not in default beyond the applicable cure period under any real estate lease, equipment lease or financing instrument relating to the Franchised Restaurant; Developer and its affiliates are not in default beyond the applicable cure period with any vendor or supplier to the Franchised Restaurant; and for the previous six months prior to the proposed opening of the Franchised Restaurant, Developer and its affiliates have not been in default beyond the applicable cure period under any agreement with Cajun or its affiliates.

  • (2) Developer and its affiliates is current on all financial and other obligations due to Cajun, its affiliates, its suppliers, and all other financial obligations due to any party in connection with the development and/or operation of the Franchised Restaurant.

  • (3) If the Authorized Site is leased or subleased, Cajun has received a copy of the fully-executed lease or sublease.

  • (4) Developer has obtained a certificate of occupancy and any other required health, safety or fire department certificates.

Source: Item 23 — RECEIPT (FDD pages 68–406)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, Cajun (presumably referring to the franchisor entity) is required to provide a representative to be present at the opening of a franchised Churchs Chicken restaurant if it is the franchisee's first franchised Churchs Chicken restaurant. The franchisee is not allowed to open their first Churchs Chicken restaurant unless a Cajun representative is present.

However, the franchisee must also satisfy certain pre-opening conditions before opening. These conditions include ensuring that the franchisee and its affiliates are not in default under any agreements with Cajun or its affiliates, or under any real estate lease, equipment lease, or financing instrument related to the restaurant. They must also not be in default with any vendor or supplier and must be current on all financial obligations to Cajun, its affiliates, and suppliers.

Additional conditions include providing Cajun with a copy of the fully-executed lease or sublease if the site is leased or subleased, and obtaining a certificate of occupancy along with any other required health, safety, or fire department certificates. Meeting these conditions is essential for the franchisee to proceed with the opening of their first Churchs Chicken restaurant with the required Cajun representative present.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.