Under what condition is a Churchs Chicken franchisee not entitled to vote on Cooperative matters?

According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee who is a member of the Cooperative is generally entitled to vote on Cooperative matters. However, a Churchs Chicken franchisee will not be able to vote if they are in default under their franchise agreement. This also applies to any other agreement the franchisee has with Cajun or its affiliates.

This condition means that if a Churchs Chicken franchisee fails to meet the obligations outlined in their franchise agreement or any other agreements with Cajun, such as payment schedules or operational standards, they will lose their voting rights within the Cooperative. This could impact their ability to influence decisions regarding regional advertising programs and standardized promotional materials.

This provision ensures that only franchisees in good standing can participate in the Cooperative's decision-making processes. It incentivizes franchisees to remain compliant with their agreements to maintain their voting privileges and influence the direction of regional advertising and marketing efforts. Prospective franchisees should carefully review the terms of the franchise agreement and any related documents to understand their obligations and avoid losing their voting rights.