Under what conditions does Cajun have the right to reduce the extent of any covenant in Section (e) for Churchs Chicken?

According to the 2025 Churchs Chicken Franchise Disclosure Document, Cajun has the right to reduce the extent of any covenant in Section (e). This reduction is effective immediately upon the guarantor's receipt of notice. The guarantor is then bound by the covenant as reduced.

This clause provides Cajun, as the franchisor, with considerable flexibility to modify the obligations of the guarantor under certain agreements. The guarantor, upon receiving notice, must adhere to the revised terms of the covenant. This modification is at Cajun's sole discretion, meaning they are not obligated to negotiate or justify the change with the guarantor.

For a prospective Churchs Chicken franchisee, this implies that any individual acting as a guarantor for the franchise agreement (often a family member or business partner) could see their obligations change during the term of the agreement. It is crucial for potential franchisees and their guarantors to fully understand the implications of this clause and to seek legal counsel to assess the potential risks associated with these covenants and the franchisor's right to modify them.