FRANCHISE·WATCH·DESK

Verified — real FDD extraction

SBA-eligible · directory code S8513 since 2026

Church's Texas Chicken

Food & Dining · independent · est. —

Church's Texas Chicken is a quick-service restaurant chain serving fried chicken, biscuits, and Southern-style sides. Franchisees operate free-standing drive-thru restaurants serving value-oriented takeout and dine-in customers.

Church's Texas Chicken net unit count declined -1.7% from 20232025 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Proven & steady

Distress

0
STABLE

The operating record is solid, but the FDD discloses a bankruptcy history (Item 4) — capped below a full endorsement. The standout in the record: owner turnover is low.

Exit rate · latest year

1.8%

vs 8.6% across 137 food & dining systems

Cost to open

$610K–$1.9M

Item 7 total investment range

SBA loan defaults

No loan record

no SBA 7(a)/504 loans found for this brand

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Fair
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Weak
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2023–2025

-1.7%
900202387320248852025

Survival record

FDD Item 20 · outlet status by year

In fiscal 2025, 13 of 714 franchised outlets left the system — a 1.8% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202320242025
Outlets at start925900873
Opened6721
Transfers19198
Terminations1671
Non-renewals490
Reacquired by franchisor010
Ceased — other reasons92012
Outlets at end900873885
Net change-25-27+12

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $20K franchise fee (Item 5) and a total investment of $610K–$1.9M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$610K–$1.9M

all-in investment range

Franchise fee (Item 5)

$20K

upfront, one-time

Royalty (Item 6)

5%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$50K

5% of sales, before profit

Over a 10-yr term

$500K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for Church's Texas Chicken with an independent CPA

Labor record

US Dept. of Labor enforcement · franchisee-level · FY2005–present

Federal investigators have concluded 5 wage cases against operators of this system, recovering $59K in back wages for 45 workers, including 3 child-labor cases. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.

Concluded cases

5

Back wages owed

$59K

Employees affected

45

Since 2020

5

3 of these cases involved child-labor violations, covering 9 minors across the system's franchised locations.

Read this carefully. The employers in these cases are individual Church's Texas Chicken franchisees — separately owned businesses operating under the brand name — not Church's Texas Chicken itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2025.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for Church's Texas Chicken. That's a good sign — but it reflects news coverage, not a guarantee.

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A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Church's Texas Chicken's numbers, including talking you out of a bad deal.

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Church's Texas Chicken franchise questions, answered from the filings

What percentage of Church's Texas Chicken franchises closed last year?

In Church's Texas Chicken's latest FDD Item 20 (fiscal 2025), 13 of 714 franchised outlets left the system — an annualized exit rate of 1.8% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a Church's Texas Chicken franchise cost?

Per Church's Texas Chicken's 2026 FDD, buying in requires an initial franchise fee of $20K (Item 5) and a total initial investment of $610K–$1.9M (Item 7).

What royalty does Church's Texas Chicken charge?

Church's Texas Chicken charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.

Does Church's Texas Chicken disclose earnings (Item 19)?

Yes — Church's Texas Chicken makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $1.1M. Read it closely: franchisors choose which units and which metrics to include.

Is Church's Texas Chicken a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk