Upon termination of a Churchs Chicken Cooperative, how must all monies in the Cooperative be spent?

According to the 2025 Churchs Chicken Franchise Disclosure Document, upon termination of a Regional Advertising Cooperative, all monies in the Cooperative must be spent for advertising and/or promotional purposes. This means that if a Cooperative is terminated, the funds cannot be distributed to members or used for other purposes; they must be used to promote the Churchs Chicken brand.

This condition ensures that even upon termination of a Cooperative, any remaining funds continue to benefit the Churchs Chicken system through advertising and promotional activities. It aligns with the broader goal of maintaining brand visibility and supporting franchisees' businesses, even as a Cooperative winds down.

It is important to note that Cajun, the franchisor, has the right to merge or terminate (and subsequently restart) any Cooperative. This provision, coupled with the stipulation on how funds are to be spent upon termination, highlights the franchisor's control over the advertising and promotional efforts within the Churchs Chicken system.