Church’s Chicken Offers Discounted Royalties To Newbies

Encourages New Franchisees To Develop More Stores

ATLANTA (Blue MauMau) - Church's Chicken is trying to attract multi-unit franchisees through discounts. Franchise developers who sign a new development agreement to open five stores or more before September 15, 2007 will receive a lowered royalty rate through 2009.

Scott Moffit, Vice President of Franchise Development, explained, "Church's has a standard royalty of 5%. New franchisees who contemplate store development typically commit to 3 stores. This provides an incentive to expand to 5 or more."

Mr. Moffit stated that before the roll out of this program, developers of multi-unit franchises received a standard 5% royalty rate, whether they developed few or many units. Under the program, the more stores that a franchisee commits to develop early on will lower rates to as low as 2%.

Church's Chicken website provides estimated earnings from a "Tower Prototype" franchise. "Church's Chicken offers a highly profitable franchise opportunity", the website states. A 2006 prototype's restaurant's pre-tax operating profit was 27.2%. It also declares that in addition to royalties, a 5% advertising fund is charged to a franchise owner.