factual

Under the Management Agreement, who fulfills Cajun's duties and obligations to the franchisee for Churchs Chicken?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Under a management agreement ("Management Agreement") between Cajun and Cajun Operating Company ("Cajun Operating"), Cajun Operating Company will, at all times acting on behalf of Cajun, fulfill all of Cajun's duties and obligations under this Agreement.

Cajun Operating employs all the persons who will provide services to Franchisee on Cajun's behalf under the terms of this Agreement.

If Cajun Operating fails to perform its obligations under the Management Agreement, then Cajun may replace Cajun Operating as the franchise service provider.

However, as the franchisor, Cajun will always be responsible for fulfilling all of its duties and obligations under this Agreement.

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

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, Cajun Operating Company fulfills Cajun's duties and obligations to the franchisee under the Management Agreement. Specifically, Cajun and Cajun Operating Company have a Management Agreement in place, and Cajun Operating Company will act on behalf of Cajun to fulfill all of Cajun's duties and obligations under the Franchise Agreement. Cajun Operating employs all personnel who will provide services to the franchisee on Cajun's behalf, according to the terms of the agreement.

This arrangement means that while Cajun is the franchisor, the day-to-day responsibilities and services provided to the franchisee are handled by Cajun Operating Company. This is a common structure in franchising where a parent company (Cajun in this case) uses a subsidiary or affiliate (Cajun Operating Company) to manage the operational aspects of the franchise system.

However, it's important to note that if Cajun Operating Company fails to meet its obligations under the Management Agreement, Cajun has the option to replace Cajun Operating Company as the franchise service provider. Regardless of who is providing the services, Cajun, as the franchisor, remains ultimately responsible for fulfilling all duties and obligations to the franchisee under the Franchise Agreement. This provides a level of assurance to the franchisee that the franchisor is accountable for the franchise system's performance.

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.