Under a standard Churchs Chicken Development Agreement, will I receive an exclusive territory?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 12 TERRITORY
Development Agreement.
Under our standard Development Agreement, you have a specific Development Area in which to develop one or more Restaurants. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We may offer an amendment to the Development Agreement that provides limited territorial exclusivity ("Exclusive Development Agreement"), as negotiated between us based on your capabilities and our market development objectives.
The Development Agreement grants you the right and obligation to develop an agreed-on number of Restaurants in your Development Area according to an agreed-on Development Schedule. The Development Agreement does not grant you any options, rights of first refusal, or similar rights to acquire additional franchises inside or outside your Development Area. The size of the Development Area will vary considerably and is subject to our mutual agreement before the Development Agreement is signed. Factors that may affect the size of a Development Area include your wishes, the expansion capacity of the area contemplated, the competition in the area and your prior experience and financial capacity.
If you sign an Exclusive Development Agreement, you will be granted a geographic area within which we will not open a Restaurant, nor license anyone other than you to open a Restaurant, subject to the other terms of the Agreement.
Source: Item 12 — TERRITORY (FDD pages 43–45)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, under a standard Development Agreement, franchisees will not receive an exclusive territory. The document states, "You will not receive an exclusive territory." This means that other franchisees, company-owned outlets, or other distribution channels or competitive brands controlled by Churchs Chicken can compete within the same area.
However, Churchs Chicken may offer an amendment to the Development Agreement, resulting in an "Exclusive Development Agreement" that provides limited territorial exclusivity. This is subject to negotiation based on the franchisee's capabilities and Churchs Chicken's market development objectives. If an Exclusive Development Agreement is signed, Churchs Chicken will grant a geographic area where they will not open a Restaurant or license anyone else to do so, subject to the agreement's terms.
Even with an Exclusive Development Agreement, territorial exclusivity does not extend to certain locations such as airports, train stations, stadiums, convention centers, military facilities, schools, hospitals, recreational theme parks, business or industrial foodservice venues, food courts, enclosed shopping malls and retail centers, venues with master concessionaires, Indian reservations, casinos, or similar captive market locations, even if they fall within the Development Area. The franchisee must also comply with the terms of the Exclusive Development Agreement, including opening and maintaining the agreed-upon number of Restaurants according to the Development Schedule. Failure to meet the Development Schedule could lead to termination of the Development Agreement or the limited territorial exclusivity.