factual

Under what conditions is a Churchs Chicken developer prohibited from beginning site preparation or construction of a franchised restaurant?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (1) Developer shall not begin site preparation or construction of a Franchised Restaurant until (a) Cajun has accepted the site for the Franchised Restaurant; (b) Developer has received notification from Cajun that it has accepted the Construction Plans for the Franchised Restaurant; (c) Developer has provided Cajun a copy of the fully-executed lease or sublease for the Franchised Restaurant premises or, if Developer owns the premises, proof of Developer's ownership interest; (d) Developer has procured the insurance coverage required by Section 8; and (e) if the Franchised Restaurant is the second Franchised Restaurant to be developed by Developer, Developer has established its first Franchised Restaurant as a Certified Training Restaurant as described in Section 7.D.

Source: Item 23 — RECEIPT (FDD pages 68–406)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, a developer is prohibited from beginning site preparation or construction of a franchised restaurant until certain conditions are met. Specifically, Churchs Chicken must first accept the site for the franchised restaurant. Second, the developer must receive notification from Churchs Chicken that it has accepted the Construction Plans for the franchised restaurant. Third, the developer needs to provide Churchs Chicken with a copy of the fully-executed lease or sublease for the restaurant premises, or proof of ownership if the developer owns the property. Finally, the developer must procure the insurance coverage required by Section 8 of the agreement.

These stipulations ensure that Churchs Chicken maintains control over the development process and that the franchisee meets all necessary requirements before commencing construction. This protects the brand's image and standards, and ensures the franchisee has secured the location, has approved construction plans, and has adequate insurance coverage.

Furthermore, if the franchised restaurant is the second one to be developed by the developer, an additional condition applies. The developer must have established their first franchised restaurant as a Certified Training Restaurant as described in Section 7.D. This requirement ensures that the developer has successfully implemented the Churchs Chicken training program and can properly train staff for the new location. Failing to meet any of these conditions could result in a delay in the construction process or potential termination of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.