Under what conditions can a Churchs Chicken franchisee be granted an exemption from membership in the Regional Advertising Cooperative?
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 the 2025 Churchs Chicken Franchise Disclosure Document, Cajun, the franchisor, has the authority to grant exemptions from the requirement of membership in the Regional Advertising Cooperative. A franchisee must submit a written request to Cajun, providing reasons to support the exemption. The length of the exemption, if granted, is determined by Cajun.
Cajun's decision regarding the request for exemption is considered final. If a Churchs Chicken franchisee receives an exemption, they are obligated to spend the same amount on local advertising monthly that they would have otherwise been assessed by the Cooperative.
It's important to note that Cajun also reserves 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 highlights the franchisor's discretion in managing the advertising contributions and membership within the cooperative, which could impact individual franchisees.