Church's Chicken Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Church's Chicken franchise requires a total initial investment of $1.2M – $1.9M, including a $20K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.3M[2]. SBA 7(a) loans show a 5.6% charge-off rate across 31 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.2M – $1.9M
- 35th pct Service Resta…
- Avg gross sales
- $1.3M
- Outlet subset6th pct Service Resta…
- Royalty
- 5.0%
- 8th pct Service Resta…
- Units
- 885
- 37th pct Service Resta…
- SBA charge-off
- 5.6%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.2M – $1.9M including a $20K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.3M/year (reported for a subset of outlets rather than the whole system), with an estimated 8% cash-on-cash return (based on Restaurant Operating Profit (EBITDAR)).
- RISKVerdict B (Above average), verdict score 64/100 (higher is better). SBA loan charge-off rate of 5.6% across 31 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Cajun Global LLC
- Parent company
- Cajun Holdco LLC
- Ultimate parent
- High Bluff Capital Partners LLC
- Predecessor
- Cajun Operating Company
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Director
- Roland Gonzalez
- Incorporated in
- Delaware
- HQ
- 980 Hammond Drive, Suite 1100, Atlanta, Georgia 30328-6161
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $261.9M
- vs $254.9M prior year
Overview
About
Quick-service restaurants offering fried chicken (original and spicy), chicken sandwiches, sides, and Honey Butter Biscuits under the Church's/Church's Chicken/Church's Texas Chicken trade names.
- CEO
- Roland Gonzalez
- Headquarters
- Georgia
- Founded
- 1952
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 33% above the typical full-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $10K | $20K |
| Equipment, build-out, other | $1.2M | $1.8M |
| Total initial investment | $1.2M | $1.9M |
Source: Church's Chicken 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.2M – $1.9M
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $20K
- Top 40% of category vs category
- Franchise fee
- $20K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Payback period
- 12.0 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $3K |
| Training fee | $1K |
| Transfer fee | $10K |
What do units actually make?
Average unit sales run 28% below the full-service restaurants norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Church's Chicken until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.6M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $235K as Restaurant Operating Profit (EBITDAR). This is a disclosed figure, not our estimate — we publish no modelled profit for Church's Chicken.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Church's Chicken unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $1.3M
- Per unit, per year
- Avg restaurant operating profit (ebitdar)
- $235K
- Reported as Restaurant Operating Profit (EBITDAR) in FDD Item 19
- Cash-on-cash
- 8.4%
- Based on Restaurant Operating Profit (EBITDAR) / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical average income statement + gross sales by quartile
- Sample size
- 514 outlets
- vs category median 18 · large
- Range (low → high)
- $967K→$1.5M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 802 Full-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.3M/year in gross sales. Revenue-to-investment ratio: 0.8x. Reported for a subset of outlets rather than the whole system.
Fee burden
5.0% royalty + 5.0% ad fund.
Operator retention
System contracting at -3.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How Church's Chicken Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 885
- Opened
- N/A
- Last reporting year
- Closed
- N/A
- Company-owned
- 163
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Net growth (3-yr)
- -3.0%
- Net unit change over 3 years
- 3-yr CAGR
- -3.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Transfers (3yr)
- 8
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 31
- Loan volume
- $23.9M
- Median loan
- $574K
- 50th percentile
- Charge-off rate
- 5.6%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 94.4%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 19
- Defaults
- 1
- Typical loan rate
- 6.4%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7225
- Jobs supported
- 1,017
- 4.3 per loan
- Lender concentration
- 13%
- top lender's share
Borrower mix: 28% went to startups / new businesses, 72% to established operators
Vintage analysis
Church's Chicken charge-off rate by loan vintage
Top lenders financing Church's Chicken franchisees
Showing 3 of 19 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Church's Chicken's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 14 states
- Startup risk premium and job creation velocity
- 13-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 5.6% — 65% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
2 concluded franchise cases (Georgia/Mississippi 2018 termination dispute settled 2018-2019; California third-party tortious interference claim dismissed 2025) and 3 pending cases, all stemming from the 2022 termination of Royal Texas, LLC's 52-restaurant Houston franchise (breach of contract counterclaims, tortious interference claims by Royal Texas affiliates).
Bankruptcy (Item 4)
Disclosed in last 7 years
Affiliate bankruptcies disclosed: (1) QCE Finance LLC/QFA Royalties and related Quiznos entities, prepackaged Chapter 11 in 2014, emerged same year, closed 2015, pre-dating Quiznos brand acquisition by HBCP; (2) Hooters of America LLC and affiliates filed Chapter 11 in March 2025, plan approved and effective October 2025 (one Cajun officer, Alisa Cleek, was a Hooters officer within 1 year of filing); (3) ARC Burger, LLC (Hardee's affiliate) filed Chapter 7 petition April 2026, ongoing. None involve the franchisor entity (Cajun Global LLC) itself.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Territory population | 50,000 |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Governing law | Georgia |
| Litigation count | 6 |
View Item 3 litigation summary
2 concluded franchise cases (Georgia/Mississippi 2018 termination dispute settled 2018-2019; California third-party tortious interference claim dismissed 2025) and 3 pending cases, all stemming from the 2022 termination of Royal Texas, LLC's 52-restaurant Houston franchise (breach of contract counterclaims, tortious interference claims by Royal Texas affiliates).
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 135 hrs
- Training location
- Certified Training Restaurant (CTR)
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisee proposes, franchisor accepts within 60 days
- Franchisor financing
- Not offered
- Item 10
- POS system
- POS System (approved vendor, includes back-office software and credit card processing)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS System (approved vendor, includes back-office software and credit card processing)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Church's Chicken franchise?
The total investment to open a Church's Chicken franchise ranges from $1.2M – $1.9M, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Church's Chicken franchise owners earn?
According to Item 19 of the Church's Chicken FDD, the average gross sales per unit is $1.3M. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Church's Chicken FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Church's Chicken FDD and qualifies whose outlets they describe.
What is Church's Chicken's franchise failure rate?
Based on SBA 7(a) loan data, Church's Chicken has a charge-off rate of 5.6% across 31 loans, meaning 5.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Church's Chicken franchise locations are there?
As of their most recent FDD filing, Church's Chicken has 885 total units in the United States, including 722 franchised units and 163 company-owned units.
Is Church's Chicken a good franchise to buy?
FranchiseVerdict rates Church's Chicken as a B-grade franchise with a verdict score of 64 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.