Under the Platinum Incentive Plan, what is the initial franchise fee for a Churchs Chicken restaurant?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ntive program (the "Platinum Incentive Plan") for franchised Church's Texas Chicken restaurants ("Franchised Restaurants") that are developed pursuant to a Church's Texas Chicken Development Agreement that provides for the development of a minimum of five Franchised Restaurants within 5 years (the "Development Agreement").
Cajun and Developer are entering into this Addendum to modify the Development Agreement and to provide for Developer's receipt of the development incentives offered by Cajun pursuant to the Platinum Incentive Plan.
NOW, THEREFORE, in consideration of the mutual covenants, agreements and obligations set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:
1. Platinum Incentive Plan Requirements.
- A. In order to be eligible for the Platinum Incentive Plan, Developer must open its first Franchised Restaurant no later than one year following the date of the Development Agreement (the "First Restaurant Deadline"). If Developer fails to open its first Franchised Restaurant by the First Restaurant Deadline, Developershall not be entitled to receive any benefits under the Platinum Incentive Plan.
- B. If the first Franchised Restaurant is developed in accordance with Section 1.A., the Platinum Incentive Plan benefits set forth in this Addendum shall apply to the second through fifth Franchised Restaurants that Developer opens in full compliance with the Development Schedule and the Development Agreement (each an "Eligible Restaurant"); provided that each Franchised Restaurant is opened by Developer by no later than one year after the opening date of the immediately prior Franchised Restaurant.
2. Development Incentives.
A. For each Eligible Restaurant that Developer develops and opens in accordance with the terms of the Development Schedule and th
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the initial franchise fee for an eligible restaurant developed under the Platinum Incentive Plan is $0. This incentive applies to franchisees who commit to developing a minimum of five franchised Churchs Chicken restaurants within five years.
The Platinum Incentive Plan also includes a reduced royalty fee schedule. For the first year after the restaurant opens, the royalty fee is 0%. It then increases to 2% in the second year, 3% in the third year, 4% in the fourth year, and 5% in the fifth year and thereafter.
To qualify for the Platinum Incentive Plan, the franchisee must open their first restaurant within one year of the Development Agreement date. The benefits of the plan then apply to the second through fifth restaurants, provided each subsequent restaurant opens within one year of the previous one. This plan is designed to encourage rapid development by offering significant initial savings on franchise fees and reduced royalty payments in the early years of operation.