Under what condition is the Operating Principal requirement for a Churchs Chicken franchise waived?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Following Cajun's approval of a new Operating Principal, that person shall execute the attached form of Guaranty unless waived by Cajun in its sole discretion.
Unless waived in writing by Cajun, the Operating Principal shall meet all of the following qualifications:
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, franchisees must designate an Operating Principal who meets specific qualifications, including an equity ownership interest of at least 10%, full control over day-to-day operations, full-time supervision of the franchised restaurant, residency within a reasonable driving distance, completion of required training programs, and approval by Cajun Global LLC.
However, Cajun Global LLC can waive the requirement for the Operating Principal to execute the Guaranty form at its sole discretion. Additionally, Cajun Global LLC can waive the Operating Principal requirements in writing.
This waiver provides Churchs Chicken with flexibility in certain situations, potentially benefiting franchisees who may have difficulty meeting the standard Operating Principal requirements. However, it's important to note that the decision to grant a waiver is entirely at Cajun Global LLC's discretion, introducing an element of uncertainty for prospective franchisees.