Church's Chicken Begins Re-Franchising Program

Date: AUG 6th, 2007

Topic: Franchise News

Church's Chicken recently announced the transfer of 36 restaurants in Georgia, Mississippi and Arizona to franchisees as part of a re-franchising strategy. The strategy calls for selling company-owned stores in selected markets to proven franchisees as well as the acquisition by the company of restaurants in other strategic company store markets.

'This is one of several of Church's strategic initiatives to fuel new store development and to maximize operating efficiencies in both company and franchise markets,' said Scott Moffitt, Vice President of Franchise Sales and Development. 'For existing franchisees this is a great opportunity to expand their business at a very rapid pace. It also represents an attractive opportunity to recruit new operators to the Church's system.'

Church's franchise development team has awarded three re-franchising packages for development in Mississippi, Arizona and Georgia. The largest re-franchising package was awarded to Aslam Khan of Midwest Hospitality, Inc., Oakbrook, Ill. The package consists of the purchase of 24 company-owned stores in the Atlanta, Macon and Albany, Ga. markets. Sacramento-based Tony Lutfi of Mar-Lu Arizona, LLC purchased 10 company-owned stores in the Tucson/Nogales, Ariz. market. Finally, Joe Mauldin of Pine Belt Foods, Inc., in Laurel, Miss., purchased two company-owned stores in the Biloxi/Gulfport, Miss. market. Typically re-franchising agreements provide for the development of additional stores.

In some markets, the company is exploring the acquisition of restaurants from Church's Chicken franchisees, as well as acquisition of other restaurants for conversion into Church's Chicken. Church's development team has retained Atlanta-based Brookwood Advisors to assist in these acquisitions.

'The growth strategy at Church's Chicken is aggressive and creative,' said Moffitt. 'And it will take well-qualified and proven entrepreneurs to meet our goals.'

Church's Chicken's is looking for entrepreneurs who have between 10 and 30 quick-service restaurants in their portfolios that could be converted to Church's Chicken. Interested entities should contact Scott Moffitt at 770-350-3880 for more information and requirements.

Church's Chicken will continue to be growth-oriented and aggressive as it seeks new franchise opportunities. The company plans to open 100 new restaurants by the end of this year.