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Church's Chicken Franchise Cost & Fees

Date of Incorporation: 1952

Franchising Since: 1967

Headquarters: Atlantla, Georgia

 

Business Description: The franchisor is Cajun Global LLC. Church’s Restaurants are quick-service restaurants offering a limited menu of lunch and dinner products featuring flavorful chicken both original and spicy, Tender Strips®, and southern style chicken sandwiches with classic sides and hand-made from scratch biscuits.

 

Franchise Offer: 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.”

 

Financial Assistance: The Lender offers two different programs; a conventional loan, and a United States Small Business Administration (SBA) – guaranteed loan. Each loan is subject to credit approval. Except as noted, neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of theirs, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of theirs. The franchisor does have an agreement with Pacific Premier Bank to offer financing to qualified existing franchisees to purchase inventory, equipment, furniture and trade fixtures, for the “Star” (System Revitalization and Transformation) reimage program.

 

Training and Assistance: Before opening their first Restaurant, franchisees’ Operating Principal and up to four designated management employees (the franchisor decides the exact number, which must be at least three for the first Restaurant, and at least two for each additional Restaurant) must attend and complete, to our satisfaction, the initial Pathway to Excellence Advanced Operations and Leadership Training Program. The franchisor also may periodically make available to franchisees and their employees additional training programs that the franchisor, in its discretion, chooses to conduct.

 

Territory: Franchisees will be granted a geographic area (the 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. The Protected Area will typically (but not necessarily) consist of an area equal to the lesser of: (1) a two mile radius from the Restaurant; or (2) an area surrounding the Restaurant, encompassing a population (residential and/or daytime commercial) of fifty thousand people.

 

Term of Agreement and Renewal: The length of the initial franchise term is 20 years from the date of commencement of operation of the Restaurant. One renewal term of 10 years is available, subject to contractual requirements.

 

Obligations and Restrictions: Franchisees must designate and retain an individual to serve as the “Operating Principal.” Unless waived in writing by the franchisor, the Operating Principal must meet six criteria detailed in the FDD. Franchisees must maintain at least two Certified Managers in the employ of each Restaurant throughout the term of the Franchise Agreement. Franchisees must also designate a group of individuals and/or entities to serve as a “Continuity Group”. The Continuity Group will at all times own at least 51% of the voting securities in the franchise (or if the franchise a partnership, the Continuity Group will at all times have at least a 51% interest in the operating profits and losses and at least a 51% ownership interest in the franchise). Franchisees may offer for sale at the Restaurant only products and menu items that meet the franchisor’s standards and have been approved in writing by the franchisor for sale. Franchisees must refrain from selling any products and menu items that have not approved or for which the franchisor has withdrawn approval.

 

Estimated Number of Units: 1,650

 

Investment Tables:

Initial Investment

Tower For “2200” model (2,200 square foot free-standing restaurant with both dine-in and drive-thru facilities)

Name of Fee Low High
Development Fee $10,000 per Restaurant
Initial Franchise Fee $15,000 $15,000
Real Estate (Purchase or Lease) Varies
Site Work $180,000 $270,000
Building and Improvements $375,000 $515,000
Equipment and Signs $250,000 $350,000
Fees, Misc., A&E Services, Deposits $65,000 $110,000
Initial Training $0 $23,000
Opening Supplies $4,500 $10,000
Insurance $7,500 $10,000
Utility Deposits $1,000 $3,000
Business Licenses $300 $600
Additional Funds (3 Months) $10,000 $20,000
Estimated Total (Excluding Real Estate) $918,300 $1,336,600

 

For “1850” model (1,850 square foot free-standing restaurant with both dine-in and drive-thru facilities)

Name of Fee Low High
Development Fee $10,000 per Restaurant
Initial Franchise Fee $15,000 $15,000
Real Estate (Purchase or Lease) Varies
Site Work $110,000 $270,000
Building and Improvements $315,000 $485,000
Equipment and Signs $215,000 $350,000
Fees, Misc., A&E Services, Deposits $65,000 $110,000
Initial Training $0 $23,000
Opening Supplies $4,500 $10,000
Insurance $7,500 $10,000
Utility Deposits $1,000 $3,000
Business Licenses $300 $600
Additional Funds (3 Months) $10,000 $20,000
Estimated Total (Excluding Real Estate) $753,300 $1,301,600

 

For Inline Restaurant (retail space in a strip mall-type shopping center, with dine-in facilities; it may include drive-thru facilities if located as an “end-cap”)

Name of Fee Low High
Development Fee $10,000 per Restaurant
Initial Franchise Fee $15,000 $15,000
Real Estate (Purchase or Lease) Varies
Site Work $0 $75,000
Building and Improvements $150,000 $400,000
Equipment and Signs $270,000 $330,000
Fees, Misc., A&E Services, Deposits $10,000 $40,000
Initial Training $0 $23,000
Opening Supplies $4,500 $10,000
Insurance $7,500 $10,000
Utility Deposits $1,000 $3,000
Business Licenses $300 $600
Additional Funds (3 Months) $10,000 $20,000
Estimated Total (Excluding Real Estate) $478,300 $936,600

 

Convenience Store or Travel Plaza

Name of Fee Low High
Development Fee $10,000 per Restaurant
Initial Franchise Fee $15,000 $15,000
Real Estate (Purchase or Lease) Varies
Site Work $0 $75,000
Building and Improvements $85,000 $400,000
Equipment and Signs $270,000 $330,000
Fees, Misc., A&E Services, Deposits $10,000 $85,000
Initial Training $0 $23,000
Opening Supplies $4,500 $10,000
Insurance $7,500 $10,000
Utility Deposits $1,000 $3,000
Business Licenses $300 $600
Additional Funds (3 Months) $10,000 $20,000
Estimated Total (Excluding Real Estate) $413,300 $981,600

 

Other Fees

Type of Fee Amount
Royalty 5% of gross sales.
Tax Reimbursement If any taxes, fees or assessments are imposed on the franchisor by reason of it acting as franchisor or licensing proprietary marks to the franchisee, then the franchisee must reimburse the franchisor such amount.
Development Schedule Extension Fee $3,000 for each Development Schedule extension of 4 months – if extending opening date and open within the extended time period, the extension fee will be credited to the Franchise Fee; if extending site approval date, no credit.
Advertising Fund Contribution 5% of Gross Sales (up to 1% of Gross Sales if a Regional Co-Op has been formed, plus contribution to Co-Op) and at least $25,000/year
Regional Advertising Cooperative contribution Percentage of Gross Sales as determined by the franchisee’s Ad Co-Op. The contribution must be at least 5% of Gross Sales.
Transfer $5,000
Unauthorized Transfer $25,000
Renewal 50% of the then-current, standard, initial franchise fee.
Securities Offering Review Fee $5,000 or such greater amount as is necessary to reimburse the franchisor for reviewing the proposed offering.
New Supplier Inspection and Product Testing Cost of inspecting the facilities of a previously unapproved supplier proposed by the franchisee and of testing ingredients, products, supplies or goods the franchisee proposes to purchase from that supplier (could range from $0 to $5,000)
Audit (by the franchisor) Cost of audit.
Customer Satisfaction and Franchise Compliance Programs Currently $40 per 4-week period for the combination of Guest Hotline (Service Check) and Customer Survey Program (SAT Track).
Late Payment Fee - Overdue Payments and Understated Sales 1.5% of the amounts due per month, plus $100
Default Royalty 1% of Gross Sales.
Costs and Attorneys’ Fees Will vary by circumstances.
Cure Will vary by circumstances.
Follow-Up Inspection Will vary by circumstances.
Indemnity Will vary by circumstances.
Liquidated Damages Average weekly royalty fees and advertising contributions for the 52 weeks preceding termination, multiplied by 208 (or if less than four years remaining in the term, multiplied by the number of weeks remaining in the franchise term).
Purchasing Division Surcharge Pass-through of the franchisor’s cost.
Manager Trainer Cost of training program.

The above information has been compiled from the FDD of Church's Chicken. Year of FDD: 2015

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