Risk Score
Pending analysis
Investment Range
$644,366 - $1,808,972
Total US Locations
873
Business Summary
Church's Chicken operates quick-service restaurants that specialize in fried chicken and other quick-service food items. These restaurants offer a limited menu of lunch and dinner products, including original and spicy chicken, classic sides, and Honey Butter BiscuitsTM. Church's Chicken locations can be free-standing, in storefronts, convenience stores, or travel plazas, and they provide various service formats like walk-in, drive-thru, sit-down, online ordering, and delivery.
Corporate History
Church's Chicken traces its origins back to 1952 when the first restaurant opened in San Antonio, Texas. The brand began selling franchises in 1964. Cajun Global LLC, the current franchisor, was formed in 2011 and acquired the Church's Chicken business on February 24, 2011, taking over all franchising operations from its predecessor, Cajun Operating Company. Cajun Operating Company had itself operated and franchised restaurants from 2004 until the 2011 acquisition. In 2021, Church's Holding Corp., the indirect parent of Cajun Global LLC, was acquired by affiliates of High Bluff Capital Partners LLC.
Financial Overview
Investment Range
$644,366 - $1,808,972
Franchise Fee (High)
$20,000
Royalty %
5%
Marketing %
5%
Equipment Costs (Low)
$514,716
Equipment Costs (High)
$1,522,672
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Cajun Global LLC, the franchisor for Church's Chicken, shows a healthy financial position. For the year ended December 29, 2024, the company reported a net income of $31.5 million, up from $18.85 million in 2023. The company maintains strong working capital, with $74 million in 2024 and $53.3 million in 2023, indicating sufficient liquidity to cover short-term obligations. Total long-term debt stands at approximately $314.2 million in 2024, down from $328 million in 2023. This debt includes significant securitized notes that have anticipated repayment dates in 2026 but legal final maturity in 2050, with a potential interest rate increase and accelerated principal payments if not refinanced by 2026. The company was in compliance with all debt covenants as of December 29, 2024. Subsequent to year-end, Cajun Global LLC issued an additional $90 million in fixed-rate notes and $10 million in variable funding notes in January 2025. Management believes existing litigation will not have a material adverse effect on the company's financial position or results.
Financing Details
Church's Chicken does not offer any direct or indirect financing to its franchisees. This means franchisees cannot get loans, leases, or guarantees for their obligations directly from Church's Chicken or its affiliates. The franchisor also does not engage in selling or discounting any financing arrangements for franchisees to third parties.
Performance Metrics
Total US Locations
873
Franchised Units
602
Corporate Units
159
Avg Square Footage
1,450
Franchising Since
1964
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
9
Litigation Summary
Church's Chicken has been involved in several legal disputes. In 2024, Cajun Global LLC successfully sued a former franchisee for breach of agreement and lost royalties, resulting in a $136,000 judgment. Also in 2024, Cajun Global LLC was involved in a California lawsuit regarding alleged tortious interference and unfair business practices by a third party, which was dismissed in March 2025 following a settlement. Currently, there are two pending cases that started in 2022. In one, Cajun Global LLC sued a franchisee for breach of contract and operational defaults, with a temporary restraining order granted. In the other, the franchisee is suing Cajun Global LLC for over $50 million, alleging breach of contract, implied covenant of good faith, and business defamation, with Cajun Global LLC filing counterclaims. Another pending case from 2024 involves affiliates of Cajun Global LLC in a dispute over lease interference. Older cases from 2014-2018 involved claims of fraud by former U.K. franchisees and disputes over terminated franchise agreements in the U.S., which were all resolved through settlements or dismissals.
Bankruptcy History
Church's Chicken's affiliates, specifically those related to the Quiznos brand, have a bankruptcy history. In 2014, QFA Royalties LLC and other related debtors filed a Chapter 11 prepackaged plan of reorganization in U.S. Bankruptcy Court. This plan aimed to eliminate certain debt and secure new financing. The court approved the plan in May 2014, and the entities emerged from bankruptcy in June 2014, with the case closing in December 2015. This bankruptcy occurred before High Bluff Capital Partners acquired the Quiznos brand in 2018, meaning it pertains to a predecessor entity of the current Quiznos affiliates.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Church's Chicken franchisees must give notice within a specified timeframe, satisfy all monetary obligations, and comply with the existing Franchise Agreement and any related third-party agreements. They must sign a new franchise agreement that may have significantly different terms, including potentially higher royalty and advertising fees. Franchisees also need to have the right to stay in their current location, sign a general release of claims against Church's Chicken, refurbish and modernize their restaurant to current brand standards, pay a renewal fee, and meet all operational and training requirements for all their Church's Chicken restaurants.
Training & Support Program
Franchisor Assistance
Church's Chicken provides extensive support to its franchisees. Before opening, this includes evaluating proposed sites, providing standard architectural plans and specifications, and approving final construction plans. Church's Chicken also sends a representative to the opening of the first restaurant. Franchisees and their managers receive initial training through a 2-day New Franchisee Orientation Program and a 5-week Manager-in-Training Program, along with training materials for their employees. Funds are also allocated for a Grand Opening Advertising Campaign. On an ongoing basis, Church's Chicken offers additional training programs as needed, and advises and consults with franchisees on restaurant operations via field visits, printed materials, electronic communications, meetings, seminars, and phone. The franchisor manages an Advertising Fund and Regional Advertising Cooperatives to support marketing. Franchisees receive and must adhere to the Operations Manual, which is updated regularly. Church's Chicken conducts periodic inspections to help operations and ensure compliance. They also provide access and support for mandatory online ordering programs, and require participation in guest feedback/hotline and customer survey programs.
Initial Training Hours
154
Training Location
Certified Training Restaurant near the franchisee's location
Ongoing Support
Church's Chicken provides ongoing support through various channels. This includes offering additional training programs as needed, and advising and consulting with franchisees on restaurant operations via field visits, printed materials, electronic communications, meetings, seminars, and phone. The franchisor manages an Advertising Fund and Regional Advertising Cooperatives to support marketing. Franchisees receive and must adhere to the Operations Manual, which is updated regularly. Church's Chicken conducts periodic inspections to help operations and ensure compliance. They also provide access to mandatory online ordering programs, including training and operational support, and require participation in guest feedback/hotline and customer survey programs.
Franchise Requirements
Ideal Candidate Profile
Church's Chicken seeks qualified individuals or entities who will designate an 'Operating Principal' to actively manage the business. The ideal Operating Principal must hold at least a 10% equity ownership in the franchise, have full day-to-day control over restaurant operations, and dedicate their full-time efforts to supervising the restaurant without substantial involvement in other businesses. They should reside within a reasonable driving distance of at least one Church's Chicken restaurant and must complete all required training programs, including the New Franchisee Orientation Program and the Manager-in-Training Program.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
For Church's Chicken, the territory is typically defined as a 'Protected Area' which is the lesser of a 2-mile radius around the restaurant or an area with a population of 50,000 people (residential and/or daytime commercial). This Protected Area excludes any existing Church's Chicken restaurants, those under construction, or locations in alternative venues such as airports, malls, or food courts. Church's Chicken can also reduce or change this Protected Area to an area with no less than 50,000 people at any time during the franchise term.
Staffing Notes
For each Church's Chicken restaurant, the franchisor requires at least two 'Certified Managers' who have completed the Manager-in-Training (MIT) Program to be employed. If a Certified Manager leaves, a qualified replacement must be enrolled in the MIT Program within 30 days. The Operating Principal, who supervises the restaurant(s) on a full-time basis, or an MIT-certified manager must be on-site at all times. For franchisees operating multiple locations, a full-time Supervisor is required for every eight Church's Chicken restaurants. Franchisees are solely responsible for hiring, compensating, and training all employees, including providing training on product preparation, customer service, and food safety using the 'Pathways to Excellence Training Program' materials. Supervisory employees may be required to sign confidentiality and non-disclosure agreements.