Under what conditions can Cajun grant a Churchs Chicken franchisee an exemption from Cooperative membership or contribution?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) Cajun may grant to any franchisee an exemption for any length of time from the requirement of membership in the Cooperative and/or from the obligation to contribute to the Cooperative (including a reduction, deferral or waiver of such contribution), upon written request of such a franchisee stating reasons supporting an exemption.
Cajun's decision regarding a request for exemption shall be final.
If an exemption is granted to a franchisee, such franchisee shall be required to expend on local advertising, on a monthly basis, the same amount as would otherwise be assessed by the Cooperative.
Cajun may exempt Church's Restaurants operated by Cajun and its affiliates from membership in the Cooperative and/or from the obligation to contribute to the Cooperative.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, Cajun may grant a franchisee an exemption from the requirement of membership in the Cooperative and/or from the obligation to contribute to the Cooperative. This exemption can be for any length of time. To request an exemption, a franchisee must submit a written request to Cajun stating the reasons supporting the exemption. Cajun's decision regarding the request is final.
If Cajun grants an exemption, the franchisee is required to spend the same amount on local advertising monthly that they would have otherwise been assessed by the Cooperative. This ensures that even if a franchisee is not directly contributing to the Cooperative, they are still investing in local advertising efforts to support the Churchs Chicken brand in their area.
Cajun also has the right to exempt Churchs Chicken restaurants operated by Cajun and its affiliates from membership in the Cooperative and/or from the obligation to contribute to the Cooperative. This clause provides Cajun with the flexibility to manage its own restaurants without being bound by the same Cooperative requirements as franchisees.