Church's Chicken
Date Incorporation: 1952
Franchising Since: 1969
Headquarters: Atlanta, Georgia
Country: USA
Description: The franchises offered are for quick-service restaurants specializing in the sale of fried chicken and other quick-service food under the service mark "Church's Chicken". Cajun Operating Company is the owner and franchisor of the Church's Chicken restaurant system.
Franchise Offer: Cajun currently operates and grants franchises for Church's Restaurants. Cajun offers franchise agreements and development agreements to qualified individuals and entities wishing to operate restaurants. The initial investment will depend on the type of Church’s restaurant that the franchisee develops.
The different restaurant franchises are:
- The "Tower 1800" prototype is a free-standing restaurant with both dine-in and drive-thru facilities.
- An inline restaurant is located in a retail space in a strip mall-type shopping center, with dine-in facilities; may include drive-thru facilities depending on the location.
- A Church's restaurant may be located attached to or part of a convenience store or travel plaza.
Financial Assistance: No direct or indirect financing is offered by the franchisor.
Training and Assistance: The franchisor will make available the New Franchisee Orientation Program (NFOP) for the franchisee, which consist of two days of workshops and seminars currently conducted at corporate offices in Atlanta, Georgia, and the manager-in-training program (MIT program) for the franchisee and up to four designated management employees. The MIT Program is designed to educate the franchisee and their managers in all phases of the fast-service segment of the restaurant industry as related to the operation of the restaurant and continues for 4 weeks. The first 2 weeks of the program includes all hourly tasks performed within a restaurant while the last two weeks of training focus on management tasks. Additional training programs may be available to the franchisee.
Territory: When a franchise agreement is signed, the franchisee will be granted a geographic area (protected area) within which the franchisor will not open, nor license anyone other than the franchisee to open a Church's restaurant during the term of the franchise agreement.
Term of Agreement and Renewal: The term of the franchise agreement is 20 years for most restaurants. For convenience stores and other non-traditional venues, the term is 5 years. The agreement can be renewed for one 10-year term, if certain conditions are met.
Obligations and Restrictions: The franchisee must and retain an individual to serve as the operating principal. franchisee may offer for sale at the restaurant only products and menu items that meet the franchisor's standards and have been approved for sale. The franchisee also must offer for sale all menu items specified in the manual or otherwise in writing.
Total Number of Units: 1,650 units
Investment Tables:
Initial Investment:
Tower 1800
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $15,000 | $15,000 |
| Real estate (purchase or lease) | Varies | Varies |
| Site work | $100,000 | $250,000 |
| Building and improvement | $250,000 | $360,000 |
| Equipment and Signs | $150,000 | $260,000 |
| Fees, misc., A&E services, deposits | $50,000 | $150,000 |
| Initial training | $0 | $13,000 |
| Opening supplies | $4,500 | $10,000 |
| Insurance | $7,500 | $10,000 |
| Utility Deposits | $2,500 | $5,000 |
| Business Licenses | $300 | $600 |
| Additional funds (3 months) | $20,000 | $30,000 |
| Total (excluding real estate) | $609,800 | $1,113,600 |
Inline restaurant
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $15,000 | $15,000 |
| Real estate (purchase or lease | Varies | Varies |
| Site work | $0 | $0 |
| Building and improvements | $75,000 | $250,000 |
| Equipment and Sign | $150,000 | $260,000 |
| Fees, misc., A&E services, deposits | $50,000 | $150,000 |
| Initial training | $0 | $13,000 |
| Opening supplies | $4,500 | $10,000 |
| Insurance | $7,500 | $10,000 |
| Utility Deposits | $2,500 | $5,000 |
| Business Licenses | $300 | $600 |
| Additional funds (3 months) | $20,000 | $30,000 |
| Total (excluding real estate) | $334,800 | $753,600 |
Convenience store or travel plaza
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $15,000 | $15,000 |
| Real estate (purchase or lease) | Varies | Varies |
| Site work | Varies | Varies |
| Building and improvements | Varies | Varies |
| Equipment and Signs | $150,000 | $260,000 |
| Fees, misc., A&E services, deposits | $50,000 | $150,000 |
| Initial training | $0 | $13,000 |
| Opening supplies | $4,500 | $10,000 |
| Insurance | $7,500 | $10,000 |
| Utility Deposits | $2,500 | $5,000 |
| Business Licenses | $300 | $600 |
| Additional funds (3 months) | $20,000 | $30,000 |
| Total (excluding real estate, site work, building and improvements) | $259,800 | $503,600 |
A development fee of $10,000 per restaurant is payable upon signing a development agreement. The initial franchise fee is only payable upon signing a franchise agreement.
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 5% of gross sales |
| Development schedule extension fee | $3,000 for each development schedule extension of 6 months |
| Advertising fund contribution | 5% of gross sales (1% of gross sales if a co-op has been formed, plus contribution to co-op), and at least $25,000 |
| Advertising co-op contribution | Percentage of gross sales as determined by the franchisee's co-op |
| Renewal | 50% of the then-current, standard, initial franchise fee |
| Guest Hotline and Customer Loyalty Program (IVR) | Pass-through of our cost per restaurant. Currently $30 per month. |
Date of FDD: 2008
The above information has been taken from the UFOC/FDD and online sources of Church's Chicken
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