Does Churchs Chicken uniformly impose all fees on its franchisees, and are there any exceptions?

According to Churchs Chicken's 2025 Franchise Disclosure Document, the franchise generally imposes all fees uniformly on its franchisees. However, Churchs Chicken retains the discretion to reduce or waive a fee for a particular franchisee for a limited time. This indicates that while the standard fee structure applies to all franchisees, there can be exceptions made on a case-by-case basis.

Several fees are detailed in the FDD, such as the Development Schedule Extension Fee of $5,000 for each extension of 5 months, which may be credited to the Franchise Fee under certain conditions. The royalty fee is 5% of Gross Sales. Manager Training costs vary, with no fee for the first two manager trainees in new developments, but a $1,250 fee for each additional trainee or for the first two trainees in a franchise transfer. Other fees include follow-up inspection costs, minimum royalty during closure, indemnity, liquidated damages, and a supply chain department surcharge with varying amounts per case of different goods.

Additional fees include a tax reimbursement for taxes imposed on Churchs Chicken as the franchisor, an advertising fund contribution of 5% of Gross Sales (with possible reductions for regional co-op participation), digital and technology fees (approximately $205 per period plus 5% of first-party digital sales), and fees for transfer, unauthorized transfer, renewal, and securities offering review. The potential for fee waivers or reductions provides some flexibility, but franchisees should be aware of the standard fees and the conditions under which they may be applied.

Prospective franchisees should inquire about the specific circumstances under which fees may be waived or reduced, as well as the criteria used to make such decisions. Understanding these potential exceptions can help franchisees better plan their finances and negotiate terms with Churchs Chicken.