Church's Chicken Franchisees Get Relief Plan

Relief is on the way for Church's Chicken franchisees. Franchise companies are struggling to deal with the deep and far-reaching effects of Covid-19 by finding unique and even inspirational ways to work with franchisees and customers. One response popping up among brands right now is deferring franchisee royalties and ad fund contributions to ease the financial burden on their franchisees.

Church's Chicken began their program last week. Church's unveiled a comprehensive plan on March 30 that allows its franchisees to defer 50 percent of their royalties and ad fund contributions during April. "The goal is to secure a swift recovery as soon as possible and that requires cash on hand," said Dusty Profumo, CFO for Church's.

"Also, by working with our franchisees, we are encouraging them to honor this reduced royalty structure and pay on time so that we can collectively move the brand forward." Church's franchisees are doing what they can to ride out the economic storm by shifting their dine-in business to take-out and delivery to provide continuity of service consistently and efficiently. "The world changed and we need to change with it," said Church's Chicken CEO Joe Christina, referring to the Covid-19 pandemic.

"That means ensuring our franchisees preserve cash so that they can continue to pay their employees, serve our guests, and support the communities we operate in."