Under what conditions can Cajun modify the covenants in the Churchs Chicken Development Agreement?

According to Churchs Chicken's 2025 Franchise Disclosure Document, Cajun, the franchisor, has the right to modify covenants within the Development Agreement under specific conditions. The FDD states that Cajun has the sole discretion to reduce the extent of any covenant in Section 14.C of the agreement. This modification becomes effective immediately upon the developer's receipt of notice from Cajun.

This means that Churchs Chicken can alter the terms of certain restrictive covenants, such as those related to non-compete clauses, during the term of the agreement. The developer is then bound by these changes as soon as they receive notice, regardless of Section 21 of the agreement. This gives Churchs Chicken considerable flexibility to adjust the agreement's terms as they see fit.

For a prospective Churchs Chicken developer, this clause introduces an element of uncertainty. While the franchisor cannot unilaterally change all aspects of the agreement, the ability to modify covenants provides Churchs Chicken with a mechanism to respond to changing market conditions or other unforeseen circumstances. It is important for potential developers to carefully consider the implications of this clause and to seek legal counsel to fully understand their rights and obligations under the Development Agreement.