Document:

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                                                                    EXHIBIT 10.5

                                CHURCHS CHICKEN
                             DEVELOPMENT AGREEMENT
                                  (Exclusive)

                                    Between

                             AFC ENTERPRISES, INC.

                                      and

                        _______________________________

                                                          Dev. Agr. No.:________
                                                          No. Options:__________
                                                          Date:_________________
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                             AFC Enterprises, Inc.

                                CHURCHS CHICKEN
                             DEVELOPMENT AGREEMENT
                                  (Exclusive)

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                        <C>
I.         GRANT.........................................................   2

II.        DEVELOPMENT FEE...............................................   3

III.       DEVELOPMENT SCHEDULE..........................................   3

IV.        FRANCHISED UNIT OPENINGS......................................   4

V.         DEFAULT AND TERMINATION.......................................   6

VI.        TRANSFERABILITY OF INTEREST...................................   7

VII.       CONFIDENTIAL INFORMATION......................................  10

VIII.      COVENANTS.....................................................  11

IX.        NOTICES.......................................................  12

X.         NON-WAIVER....................................................  13

XI.        INDEPENDENT CONTRACTOR AND INDEMNIFICATION....................  13

XII.       APPROVALS.....................................................  14

XIII.      ACKNOWLEDGMENT................................................  14

XIV.       SEVERABILITY AND CONSTRUCTION.................................  15

XV.        ENTIRE AGREEMENT AND APPLICABLE LAW...........................  16

EXHIBIT A  DEVELOPMENT SCHEDULE..........................................  18

EXHIBIT B  TERRITORY.....................................................  19

EXHIBIT C  FRANCHISE AGREEMENT...........................................  20
</TABLE>

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                             AFC Enterprises, Inc.

                                CHURCHS CHICKEN
                             DEVELOPMENT AGREEMENT
                                  (Exclusive)

          THIS AGREEMENT (the "Agreement"), made this ______ day of
__________________________, 19___, by and between AFC Enterprises, Inc. (f/k/a
Americas Favorite Chicken Company), a Minnesota corporation, with its principal
place of business at Six Concourse Parkway, Suite 1700, Atlanta, Georgia 30328-
5352, U.S.A. ("Franchisor") and_________________________________________________
____________________________ ("Developer").

                                  WITNESSETH:

          WHEREAS, Franchisor owns a unique system for opening and operating
restaurants ("CHURCHS Restaurant(s)") specializing in the preparation,
merchandising, advertising and sale of fried chicken and other quick-service
menu items developed and owned by Franchisor (the "CHURCHS System" or the
"System");

          WHEREAS, the distinguishing characteristics of the CHURCHS System
include, without limitation, the names "CHURCHS" and "CHURCHS Chicken"; the
distinguishing characteristics of which include, without limitation, uniform and
distinctive building designs, interior and exterior layouts, trade dress,
equipment layout standards and specifications, development and maintenance of
sources of supply, operating procedures for sanitation and maintenance, food and
beverage storage procedures, service procedures, and secret food preparation
recipes and batter mixes, standards and specifications for equipment, equipment
layouts, products, operating procedures and management programs, all of which
may be changed, improved and further developed by Franchisor from time to time;

          WHEREAS, Franchisor identifies the CHURCHS System by means of certain
trade names, service marks, trademarks, logos, emblems, and indicia of origin,
including, but not limited to, the marks "CHURCHS" and "CHURCHS Chicken" and
such other trade names, service marks, and trademarks as are now, or may
hereafter, be designated by Franchisor for use in connection with the System
("Proprietary Marks");

          WHEREAS, Franchisor continues to develop, use, and control the use of
such Proprietary Marks in order to identify for the public the source of
services and products marketed thereunder in the CHURCHS System and to represent
the CHURCHS System's high standards of quality, appearance, and service;
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          WHEREAS, Developer wishes to be assisted, trained and licensed by
Franchisor as a CHURCHS developer and franchisee and licensed to use, in
connection therewith, the CHURCHS System;

          WHEREAS, Developer understands the importance of the CHURCHS System
and CHURCHS high and uniform standards of quality, cleanliness, appearance, and
service, and the necessity of opening and operating Developer's CHURCHS
Restaurants in conformity with the CHURCHS System; and

          WHEREAS, Developer wishes to obtain the right to develop CHURCHS
Restaurants ("Franchised Units") in the area described in this Agreement and to
use the CHURCHS System in connection with those Franchised Units;

          NOW, THEREFORE, the parties hereto agree as follows:

I.   GRANT

     1.01.  Franchisor hereby grants the Developer, subject to the terms and
conditions of this Development Agreement and as long as Developer shall not be
in default of this Agreement or any other development, franchise or other
agreement between Developer and Franchisor, development rights to obtain
franchises to establish and operate ________ Franchised Units, and to use the
Church's System solely in connection therewith, at specific locations to be
designated in separate franchise agreements ("Franchise Agreements"), executed
as provided in Section 3.01. hereof, and pursuant to the schedule set forth in
Exhibit A to this Agreement ("Development Schedule").  Each Franchised Unit
---------
developed pursuant hereto shall be located in the area described in Exhibit B
                                                                    ---------
hereto "(Development Area").

     1.02.  Subject to the terms and conditions herein, Franchisor shall neither
establish nor license anyone other than Developer to establish a Franchised Unit
in the Development Area until sixty (60) days after the commencement of
operations of the final Franchised Unit under this Agreement, without
Developer's prior written consent.

     1.03.  Each Franchised Unit for which a development right is granted
hereunder shall be established and operated pursuant to a Franchise Agreement to
be entered into between Developer and Franchisor in accordance with Section
3.01. hereof.

     1.04.  This Agreement is not a franchise agreement, and does not grant the
Developer any right to use Franchisor's Proprietary Marks or the Church's
System, but merely sets forth the terms and conditions under which Developer
will be entitled to obtain a franchise agreement.

     1.05.  Developer shall have no right under this Agreement to license others
under the Proprietary Marks or to use the Church's System.

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II.  DEVELOPMENT FEE

     In consideration of the development rights granted herein, Developer has
paid to the Franchisor upon execution of this Agreement a non-refundable
development fee of __________________________________ Dollars ($_____________)
which development fee has been fully earned by Franchisor for administrative and
other expenses incurred by Franchisor and for the development opportunities lost
or deferred as a result of the rights granted Developer herein.

III. DEVELOPMENT SCHEDULE

     3.01.  Developer shall exercise each development right granted herein only
by executing a Franchise Agreement for each Franchised Unit for a site accepted
by the Franchisor in the Development Area as hereinafter provided.  Developer's
right to execute such a Franchise Agreement shall be contingent upon Developer's
continuous performance of all of the terms and conditions of this Agreement and
any other development, franchise or other agreements between Developer and
Franchisor.  The Franchise Agreement for each Franchised Unit developed pursuant
to this Agreement shall be in the form of the Franchise Agreement attached
hereto as Exhibit C.

     3.02.  Recognizing that time is of the essence in this Agreement, Developer
agrees to exercise the development rights granted hereunder in the manner
specified in Section IV hereof and to satisfy the Development Schedule.  Failure
by Developer to adhere to the Development Schedule shall constitute a default
under this Agreement, as provided in Section 5.03. hereof.

     3.03.  In addition to the development fee required by Section II hereof,
Developer shall pay (i) an initial franchise fee for each Restaurant developed
hereunder in the amount of Fifteen Thousand Dollars ($15,000) upon execution of
a Franchise Agreement for each such Franchised Unit, all of which amount shall
be non-refundable and fully earned by Franchisor upon execution of the Franchise
Agreement for a Franchised Unit.

     3.04   Franchisor reserves the right, in its sole discretion, to grant
Developer one or more extensions to the Development Schedule (a Development
Schedule Extension) provided, however, Franchisee shall be required to pay
Franchisor a fee (the Development Schedule Extension Fee) in an amount not to
exceed Three Thousand Dollars and No/Cents ($3,000.00) for each Development
Schedule Extension of six (6) months duration or less.  Notwithstanding the
foregoing, Franchisor reserves the right to waive the applicable Development
Schedule Extension Fee, in its sole discretion, upon a showing, by Franchisee,
to Franchisor s satisfaction, that (1) Developer has used its best efforts to
comply with the Development Schedule and (b) Franchisee has been unable to
comply with the Development Schedule as a result of conditions or events beyond
Franchisees control.  Nothing herein shall be deemed to require Franchisor to
grant Franchisee a Development

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Schedule Extension at any time. Furthermore, the grant of one Development
Schedule Extension to Franchisee shall not be deemed approval of any further
Development

IV.  FRANCHISED UNIT OPENINGS

     4.01.  Developer shall submit a proposed site for each Franchised Unit for
acceptance by Franchisor. Franchisor shall, provided there exists no default by
Developer under this Agreement or any other development, franchise or other
agreement between Developer and Franchisor, evaluate each site proposed and
shall promptly, but not more than thirty (30) days after receipt of Developer's
proposal, send to Developer written notice of acceptance or non-acceptance of
the site.  Site acceptance does not assure that a Franchise Agreement will be
executed.  Execution of the Franchise Agreement is contingent upon Developer
purchasing or leasing the proposed site and securing acceptance of the final
plans and specifications as provided below.

     4.02.  Within ninety (90) days after notice of Franchisor's site
acceptance, Developer shall:

            A. Submit, in writing to Franchisor, satisfactory proof to
            Franchisor that Developer:

               (i)   owns the accepted site;

               (ii)  has leased the accepted site for a term which, with renewal
            options, is not less than the initial term of the Franchise
            Agreement; or

               (iii) has entered into a written agreement to purchase or to
            lease the accepted site on terms provided herein, subject only to
            obtaining necessary governmental permits. If Developer leases the
            accepted site, the lease must provide: (a) that, in the event
            Developer defaults under or otherwise ceases operating the
            Franchised Unit at the accepted site during the term of the lease,
            Franchisor shall have the right, at its option, to assume
            Developer's position under the lease; (b) that, in the event
            Developer defaults under the lease, notice of the default shall
            immediately be forwarded to Franchisor; and (c) that Franchisor
            shall have the right, upon default under the lease or other
            cessation of operation at the accepted site, to make the
            modifications and alterations to the Franchised Unit set forth in
            Section 16.01.D. of the Franchise Agreement. The proof required by
            this Section includes, but is not limited to, submission of executed
            copies of all leases and deeds, as well as all governmental
            approvals if effectiveness of the leases or deeds is conditioned
            thereon.

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     B.  Submit to Franchisor, and obtain Franchisor's written approval of, the
     final and complete plans and specifications for the construction (or
     renovation) and decoration of the Franchised Unit, which must be in
     conformity with Franchisor's standards and specifications for Franchised
     Units, as set out in the current Confidential Operating Standards Manual
     (as defined in the Franchise Agreement) or otherwise in writing
     (hereinafter, the "Construction Plans").  The final Construction Plans
     shall include, but are not limited to, floor plans, equipment layouts,
     decor, and interior and exterior elevations.

     C.  Execute the Franchise Agreement and pay all fees required thereunder.
     If Developer is a partnership, each general partner shall, and if Developer
     is a corporation, each stockholder holding a beneficial interest of five
     percent (5%) or more of the securities with voting rights of Developer or
     any corporation directly or indirectly controlling Developer shall,
     guarantee the performance of the Franchise Agreement by executing the
     Franchisor's Franchise Agreement Guarantee form.  Franchisor shall not
     approve the final construction plans until the Franchise Agreement is
     executed and all fees are paid by Franchisee.

     4.03.  Developer shall procure the insurance coverage provided for in
Section XI of the Franchise Agreement, prior to commencement of construction of
a Franchised Unit, and shall maintain such insurance coverage throughout the
term of the Franchise Agreement.

     4.04.  No more than thirty (30) days after the Franchisor approves
Developer's Construction Plans, Developer shall commence construction or
renovation of the Franchised Unit.  If commencement of construction or
renovation is delayed by a cause beyond the reasonable control of Developer, the
date upon which commencement of construction or renovation is to begin may be
extended by obtaining written approval of Franchisor.

     4.05.  Upon commencement of construction or renovation of the Franchised
Unit, Developer shall notify Franchisor on such form as Franchisor may
prescribe.

     4.06.  Developer shall have completed construction or renovation and
commenced operation of the Franchised Unit within one-hundred eighty (180) days
from execution of the Franchise Agreement as provided in Section 4.02.C. hereof.
Franchisor may, in its sole discretion, extend this period to address unforeseen
construction delays, not within the control of Developer.  Nothing herein shall
be deemed to relieve Developer of the obligation of complying with the
Development Schedule.

     4.07.  At least ten (10) days prior to the proposed commencement of
operation of each Franchised Unit, Developer shall notify Franchisor of such
proposed opening. If the Franchised Unit is Developer's first Franchised Unit
opened hereunder, Franchisor shall provide a representative to be present at the
opening.  The Franchised Unit shall not be opened unless such representative is
present.  Should commencement of operation of the Franchised Unit be delayed by
the failure of Franchisor to provide such a representative, the date upon which
commencement of operation of the

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Franchised Unit is required pursuant to Exhibit A of this Agreement, shall be
extended until such time as such assistance is provided by Franchisor.

V.   DEFAULT AND TERMINATION

     5.01.  The rights granted to Developer in this Agreement have been granted
based upon Developer's representations and assurances, among others, that the
conditions set forth in Sections III and  IV of this Development Agreement will
be met by Developer in a timely manner.

     5.02.  Developer shall be deemed to be in default under this Agreement, and
all rights granted herein shall automatically terminate without notice to
Developer, if Developer shall become insolvent or make a general assignment for
the benefit of creditors; if a petition in bankruptcy is filed by Developer or
such a petition is filed against Developer and not opposed by Developer; or if
Developer is adjudicated bankrupt or insolvent; or if a receiver or other
custodian (permanent or temporary) of Developer's assets or property, or any
part thereof, is appointed by any court of competent jurisdiction; or if
proceedings for a composition with creditors under the applicable law of any
jurisdiction should be instituted by or against Developer; or if a final
judgment remains unsatisfied or of record for thirty (30) days or longer (unless
a supersedeas bond is filed); or if Developer is dissolved; or if execution is
levied against Developer's property or business; or if suit to foreclose any
lien or mortgage against the premises or equipment of any Franchised Unit
developed hereunder is instituted against the Developer and not dismissed within
thirty (30) days; or if the real or personal property of any Franchised Unit
developed hereunder shall be sold after levy thereupon by any sheriff, marshall,
or constable.

     5.03.  If Developer fails to comply with the Development Schedule or any
other terms of this Agreement, or fails to obtain Franchisor's approval of a
site or construction plans and specifications prior to commencement of
construction, or fails to comply with any terms or conditions of any franchise
agreement covering a Franchised Unit established hereunder, or any other
agreement between Developer or any affiliate of Developer and Franchisor or any
affiliate of Franchisor, such action shall constitute a default under this
Development Agreement.  Upon such default, Franchisor, in its discretion, may,
effective immediately upon the mailing of written notice by Franchisor to
Developer, do any one or more of the following:

            A.  Terminate this Agreement and all rights granted hereunder
            without affording the Developer any opportunity to cure the default;

            B.  Reduce the number of Franchised Units which Developer may
            establish pursuant to Section 1.01 of this Agreement;

            C.  Terminate the territorial exclusivity granted Developer in
            Section 1.01 hereof or reduce the area of territorial exclusivity
            granted Developer hereunder;

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            D.  Withhold evaluation or approval of site proposal packages and
            refuse to permit the opening of any Franchised Unit then under
            construction or otherwise not ready to commence operations; or

            E.  Accelerate the Development Schedule set forth in Exhibit A
            hereto.

     In addition to the foregoing, Franchisor shall be entitled to pursue any
other remedies available hereunder or at law or in equity.

     5.04.  Upon termination of this Agreement, Developer shall have no right to
establish or operate any Franchised Unit for which a Franchise Agreement has not
been executed by Franchisor and delivered to Developer at the time of
termination; and Franchisor shall be entitled to establish, and to license
others to establish, Franchised Units in the Development Area, except as may be
provided under any other agreement which is then in effect between Franchisor
and Developer.

     5.05.  A default in the Development Schedule under this Development
Agreement shall not constitute a default under any existing Franchise Agreement
between the parties hereto.

VI.  TRANSFERABILITY OF INTEREST

     6.01.  Transfer by Franchisor.  This Agreement shall inure to the benefit
            ----------------------
of the successors and assigns of Franchisor.  Franchisor shall have the right to
transfer or assign its interest in this Agreement to any person, persons,
partnership, association, or corporation.  If Franchisor's assignee assumes all
the obligations of Franchisor hereunder and sends written notice of the
assignment so attesting, Developer agrees promptly to execute a general release
of Franchisor, and any affiliates of Franchisor, from claims or liabilities of
Franchisor under this Agreement.

     6.02.  Transfer by Developer.  Developer understands and acknowledges that
            ---------------------
the rights and duties set forth in this Agreement are personal to Developer, and
that Franchisor has granted this Agreement in reliance on Developer's business
skill and financial capacity.  Accordingly, neither (i) Developer, nor (ii) any
immediate or remote successor to Developer, nor (iii) any individual,
partnership, corporation or other legal entity which directly or indirectly owns
any interest in the Developer or in this Development Agreement, shall sell,
assign, transfer, convey, donate, pledge, mortgage, or otherwise encumber any
direct or indirect interest in this Agreement or in Developer without the prior
written consent of Franchisor.  Any purported assignment or transfer, by
operation of law or otherwise, not having the written consent of Franchisor,
shall be null and void, and shall constitute a material breach of this
Agreement, for which Franchisor may then terminate without opportunity to cure
pursuant to Section 5.03. of this Agreement.  Notwithstanding anything in this
Agreement to the contrary, Developer understands and acknowledges that
individual development rights to obtain franchises to establish and operate
Franchised Units may not be transferred except in connection with a transfer of
this Development Agreement, together with all remaining

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development options due to be developed under this Agreement, in accordance with
the conditions set forth herein.

     6.03.  Conditions for Consent.  Franchisor shall not unreasonably withhold
            ----------------------
its consent to any transfer referred to in this Section hereof for the remainder
of the term hereof, when requested; provided, however, that prior to the time of
transfer:

     A.     Developer shall not be in default of the Development Schedule;

     B.     The transfer must be in conjunction with a simultaneous transfer to
     the same transferee of all Franchised Units operated by Developer under the
     Churchs System within the same DMA('s) as the remaining developmen options;
                                            -----------------------------------

     C.     All of Developer's accrued monetary obligations to Franchisor and
     its subsidiaries and affiliates shall have been satisfied;

     D.     Developer shall have agreed to remain obligated under the covenants
     contained in Sections VII and VIII hereof as if this Agreement had been
     terminated on the date of the transfer;

     E.     The transferee must be of good moral character and reputation, in
     the reasonable judgment of the Franchisor;

     F.     The transferee shall have demonstrated to the Franchisor's
     satisfaction, by meeting with the Franchisor or otherwise at Franchisor's
     option, that the transferee's qualifications meet the Franchisor's then
     current criteria for new developers;

     G.     The parties must execute a written assignment, in a form
     satisfactory to Franchisor, pursuant to which the transferee shall assume
     all of the obligations of the individual or entity which is the transferor
     under this Agreement and pursuant to which Developer shall generally
     release any and all claims it might have against Franchisor as of the date
     of the assignment;

     H.     The transferee must, at Franchisor's option, execute the then-
     current form of Development Agreement and such other then-current ancillary
     agreements as Franchisor may reasonably require. The then-current form of
     Development Agreement may have significantly different provisions,
     provided, however, that Exhibits A and B hereto shall be Exhibits A and B
     to such development agreement;

     I.     If the transferee is a partnership, the partnership agreement shall
     provide that further assignments or transfers of any interest in the
     partnership are subject to all restrictions imposed upon assignments and
     transfers in this Agreement;

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     J.     Developer shall, at Franchisor's option and request, execute a
     written guarantee of the transferee's obligations under the Agreement,
     which such guarantee shall not exceed a period of three (3) years from the
     date of transfer; and

     K.     The Developer or the transferee shall have paid to Franchisor a
     transfer fee of Five Thousand Dollars ($5,000), to cover Franchisor's
     administrative expenses in connection with the transfer, but no development
     fees shall be charged by Franchisor for a transfer.  If the transferee is a
     corporation formed by Developer for the convenience of ownership and in
     which the Developer is the sole shareholder, no transfer fee shall be
     required.

     6.04.  Grant of Security Interest.  Developer shall grant no security
            --------------------------
interest in this Agreement unless the secured party agrees that, in the event of
any default by Developer under any documents related to the security interest,
(i) Franchisor shall be provided with notice of default and be given a
reasonable time within which to cure said default, (ii) Franchisor shall have
the right and option to be substituted as obligor to the secured party and to
cure any default of Developer or to purchase the rights of the secured party
upon payment of all sums then due to such secured party, except such amounts
which may have become due as a result of any acceleration of the payment dates
based upon the Developer's default, and (iii) such other requirements as
Franchisor, in its sole discretion, deems reasonable and necessary to protect
the integrity of the Proprietary Marks and the Church's System.

     6.05.  Death or Mental Incapacity.  Upon the death or mental incapacity of
            --------------------------
any person with an interest in this Agreement or in Developer, the executor,
administrator, or personal representative of such person shall transfer his
interest to a third party approved by Franchisor within twelve (12) months after
such death or mental incapacity.  Such transfer, including, without limitation,
transfer by devise or inheritance, shall be subject to the same conditions as
any inter vivos transfer.  However, in the case of transfer by devise or
    ----- -----
inheritance, if the heirs or beneficiaries of any such person are unable to meet
the conditions in this Section VI, the personal representative of the deceased
Developer shall have a reasonable time, but no more than eighteen (18) months
after the death of the Developer, to dispose of the deceased's interest in this
Agreement and the business conducted pursuant hereto, which disposition shall be
subject to all the terms and conditions for assignments and transfers contained
in this Agreement.  If the interest is not disposed of within twelve (12) or
eighteen (18) months, whichever is applicable, Franchisor may terminate this
Agreement pursuant to Section 5.03. hereof.

     6.06.  Right of First Refusal.  Any party holding any interest in this
            ----------------------
Agreement or in Developer, and who desires to accept any bona fide offer from a
                                                         ---- ----
third party to purchase such interest, shall notify Franchisor in writing of
such offer within ten (10) days of receipt of such offer, and shall provide such
information and documentation relating to the offer as Franchisor may require.
Franchisor shall have the right and option, exercisable within thirty (30) days
after receipt of such written notification, to send written notice to the seller
that Franchisor intends to purchase the seller's interest on the same terms and
conditions offered by the third party.  In the event that Franchisor

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elects to purchase the seller's interest, closing on such purchase must occur
within sixty (60) days from the date of notice to the seller of the election to
purchase by Franchisor. Any material change in the terms of any offer prior to
closing shall constitute a new offer subject to the same rights of first refusal
by Franchisor as in the case of an initial offer. Failure of Franchisor to
exercise the option afforded by this Section 6.06. shall not constitute a waiver
of any other provisions of this Agreement, including all of the requirements of
this Section VI, with respect to a proposed transfer.

     In the event the consideration, terms, and/or conditions offered by a third
party are such that Franchisor may not reasonably be required to furnish the
same consideration, terms, and/or conditions, then Franchisor may purchase the
interest in this Agreement, Developer, or Developer's business proposed to be
sold for the reasonable equivalent in cash.  If the parties cannot agree within
a reasonable time as to the reasonable equivalent in cash of the consideration,
terms, and/or conditions offered by the third party, an independent appraiser
shall be designated by Franchisor, and his determination shall be binding upon
the parties.

     6.07.  Offerings by Developer.  Securities or partnership interests in
            ----------------------
Developer may be offered to the public, by private offering or otherwise, only
with the prior written consent of Franchisor, which consent shall not be
unreasonably withheld.  All materials required for such offering by federal or
state law shall be submitted to Franchisor for review prior to their being filed
with any governmental agency; and any materials to be used in any exempt
offering shall be submitted to Franchisor for review prior to their use.  No
offering of such securities shall imply (by use of the Proprietary Marks or
otherwise) that Franchisor is participating in the underwriting, issuance, or
offering of securities by Developer or Franchisor; and Franchisor's review of
any offering shall be limited solely to the subject of the relationship between
Developer and Franchisor. Developer and the other participants in the offering
must fully indemnify Franchisor in connection with the offering.  For each
proposed offering, Developer shall pay to Franchisor a non-refundable fee of
Five Thousand Dollars ($5,000), or such greater amount as is necessary to
reimburse Franchisor for its reasonable costs and expenses associated with
reviewing the proposed offering, including, without limitation, legal and
accounting fees.  Developer shall give Franchisor written notice at least thirty
(30) days prior to the date of commencement any offering or other transaction
covered by this Section 6.07.

VII. CONFIDENTIAL INFORMATION

     7.01.  Developer shall not, during the term of this Agreement or
thereafter, communicate, divulge, or use for the benefit of any other person,
persons, partnership, association, or corporation, any confidential information,
knowledge, or know-how concerning the construction and methods of operation of
any Franchised Unit which may be communicated to Developer, or of which
Developer may be apprised, by virtue of Developer's operation under the terms of
this Agreement.  Developer shall divulge such confidential information only to
such employees of Developer as must have access to it in order to exercise the
development rights granted hereunder and to establish and operate the Franchised
Units pursuant to the Franchise Agreement and as Developer may be required

                                       10
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by law, provided, Developer shall give Franchisor prior written notice of any
such required disclosure immediately upon receipt of notice by Developer in
order for Franchisor to have the opportunity to seek a protective order or take
such other actions as it deems appropriate under the circumstances.

      7.02.  Any and all information, knowledge, and know-how, including,
without limitation, drawings, materials, equipment, recipes, prepared mixtures
or blends of spices or other food products, and other data, which Franchisor
designates as confidential, and any information, knowledge, or know-how which
may be derived by analysis thereof, shall be deemed confidential for purposes of
this Development Agreement, except information which Developer can demonstrate
came to Developer's attention prior to disclosure thereof by Franchisor or
which, at the time of disclosure thereof by Franchisor to Developer, had become
a part of the public domain, through publication or communication by others or
which, after disclosure to Developer by Franchisor, becomes a part of the public
domain, through publication or communication by others.

      7.03.  Developer shall require all of Developer's employees, as a
condition of their employment, to execute an employment agreement, as provided
in writing by Franchisor, prohibiting them during the term of their employment,
or thereafter, from communicating, divulging, or using for the benefit of any
person, persons, partnership, association, or corporation any confidential
information, knowledge, or know-how concerning the methods of operation of the
franchised business which may be acquired during the term of their employment
with Developer. A duplicate original of each such agreement shall be provided to
Franchisor upon execution.

VIII. COVENANTS

      8.01.  Developer specifically acknowledges that, pursuant to this
Agreement, Developer will receive valuable specialized training and confidential
information, including, without limitation, information regarding the
operational, sales, promotional, and marketing methods and techniques of
Franchisor and the System.  Developer covenants that, during the term of this
Agreement, except as otherwise approved in writing by Franchisor, Developer
(who, unless otherwise specified, shall include for purposes of this Section
VIII, collectively and individually, all officers, directors and holders of a
beneficial interest of five percent (5%) or more of the securities with voting
rights of Developer, and of any corporation directly or indirectly controlling
Developer, if Developer is a corporation, and the general partners and any
limited partners, including any corporation and the officers, directors and
holders of beneficial interests of five percent (5%) or more of the securities
with voting rights, of a corporation which controls, directly or indirectly, any
general or limited partner, if Developer is a partnership) shall not, either
directly or indirectly, for Developer or through or on behalf of, or in
conjunction with, any person, persons, partnership, or corporation:

             A.  Divert or attempt to divert any business or customer of the
             Franchised Units to be developed hereunder to any competitor by
             direct or indirect inducements or otherwise, or to do or perform,
             directly or indirectly, any other

                                       11
<PAGE>

           act injurious or prejudicial to the goodwill associated with
           Franchisor's Proprietary Marks and the System;

           B.   Employ or seek to employ any person who is at the time employed
           by Franchisor or by any other Church's franchisees or otherwise, or
           directly or indirectly induce such person to leave his or her
           employment; or

           C.   Own, maintain, operate, engage in, or have an interest in any
           fast food (either takeout, on premises consumption, or a combination
           thereof) restaurant that specializes in the sale of chicken ("Chicken
           Restaurant"); provided, however, that the term "Chicken Restaurant"
           shall not apply to any business operated by Developer under a
           franchise agreement with Franchisor or an affiliate of Franchisor.

     8.02. Developer covenants that, except as otherwise approved in writing by
the Franchisor, Developer shall not, either directly or indirectly, for itself
or through or on behalf of, or in conjunction with, any person, persons,
partnership or corporation, during the term hereof or for two (2) years
following expiration or termination of this Agreement, regardless of the cause
for termination, own, maintain, engage in, or have an interest in any Chicken
Restaurant which is located within a radius of ten (10) miles of the location of
any restaurant under the Church's System which is in existence as of the date of
expiration or termination of this Agreement.

     8.03. At Franchisor's request, Developer shall require and obtain execution
of covenants similar to those set forth in this Section VIII (including
covenants applicable upon the termination of a person's relationship with
Developer) from all officers, directors, and holders of a direct or indirect
beneficial ownership interest of five percent (5%) or more in Developer. Every
covenant required by this Section 8.03. shall be in a form satisfactory to
Franchisor, including, without limitation, specific identification of Franchisor
as a third party beneficiary of such covenants with the independent right to
enforce them. Failure by Developer to obtain execution of a covenant required by
this Section 8.03. shall constitute a material breach of this Agreement.

IX.  NOTICES

     Any and all notices required or permitted under this Agreement shall be in
writing and shall be delivered by any means which will provide evidence of the
date received to the respective parties at the following addresses unless and
until a different address has been designated by written notice to the other
party:

Notices to Franchisor:        Franchise Department
                              AFC Enterprises, Inc.
                              Atlanta, Georgia 30328-5352
                              cc: Legal Department

                                       12
<PAGE>

Notices to Developer:         _________________________

                              Attention:_______________

     All written notices and reports permitted or required to be delivered by
the provisions of this Agreement shall be addressed to the party to be notified
at its most current principal business address of which the notifying party has
been notified and shall be deemed so delivered (i) at the time delivered by
hand; (ii) one (1) business day after sending by telegraph, facsimile or
comparable electronic system; or (iii) if sent by registered or certified mail
or by other means which affords the sender evidence of delivery, on the date and
time of receipt or attempted delivery if delivery has been refused or rendered
impossible by the party being notified.

X.   NON-WAIVER

     No failure of Franchisor to exercise any power reserved to it in this
Agreement, or to insist upon compliance by Developer with any obligation or
condition in this Agreement, and no custom or practice of the parties at
variance with the terms hereof, shall constitute a waiver of Franchisor's right
to demand exact compliance with the terms of this Agreement. Waiver by
Franchisor of any particular default shall not affect or impair Franchisor's
right with respect to any subsequent default of the same or of a different
nature, nor shall any delay, forbearance, or omission of Franchisor to exercise
any power or rights arising out of any breach or default by Developer of any of
the terms, provisions, or covenants of this Agreement, affect or impair
Franchisor's rights, nor shall such constitute a waiver by Franchisor of any
rights hereunder or right to declare any subsequent breach or default.
Subsequent acceptance by Franchisor of any payments due to it shall not be
deemed to be a waiver by Franchisor of any preceding breach by Developer of any
terms, covenants, or conditions of this Agreement.

XI.  INDEPENDENT CONTRACTOR AND INDEMNIFICATION

     11.01.    It is understood and agreed by the parties hereto that this
Agreement does not create a fiduciary relationship between them, that Developer
is an independent contractor, and that nothing in this Agreement is intended to
constitute either party an agent, legal representative, subsidiary, joint
venturer, partner, employee, or servant of the other for any purpose whatsoever.

     11.02.    Developer shall hold itself out to the public to be an
independent contractor operating pursuant to this Agreement. Developer agrees to
take such actions as shall be necessary to that end.

                                       13
<PAGE>

      11.03.   Developer understands and agrees that nothing in this Agreement
authorizes the Developer to make any contract, agreement, warranty, or
representation on Franchisor's behalf, or to incur any debt or any other
obligation in Franchisor's name, and that Franchisor shall in no event assume
liability for, or be deemed liable hereunder as a result of, any such action or
by reason of any act or omission of Developer, or any claim or judgement arising
therefrom. Developer shall indemnify and hold Franchisor and Franchisor's
officers, directors, shareholders, and employees, harmless against any and all
such claims arising directly or indirectly from, as a result of, or in
connection with Developer's activities, as well as the cost, including
attorney's fees, of defending against such claims.

      11.04.   Developer shall indemnify and hold Franchisor harmless for all
costs, expenses, or losses incurred by Franchisor in enforcing the provisions
hereof or in upholding the propriety of any action or determination by
Franchisor pursuant to this Agreement, or arising in any manner from Developer's
breach of or failure to perform any covenant or obligation hereunder, including,
without limitation, reasonable attorney's fees incurred by Franchisor in
connection with any litigation relating to any aspect of this Agreement, unless
Developer shall be found, after due legal proceedings, to have complied with all
of the terms, provisions, conditions and covenants hereof.

XII.  APPROVALS

      12.01.   Whenever this Agreement requires the prior approval of
Franchisor, Developer shall make a timely written request to Franchisor
therefor, and, except as may otherwise be expressly provided herein, any
approval or consent granted shall be in writing.

      12.02.   Franchisor makes no warranties or guaranties upon which Developer
may rely, and assumes no liability or obligation to Developer or any third party
to which Franchisor would not otherwise be subject, by providing any waiver,
approval, advice, consent, or services to Developer in connection with this
Agreement, or by reason of any neglect, delay, or denial of any request
therefor.

XIII. ACKNOWLEDGMENT

      13.01.   Developer acknowledges that the success of the business venture
contemplated by this Agreement involves substantial business risks and will be
largely dependent upon the ability of Developer as an independent businessman.
Franchisor expressly disclaims the making of, and Developer acknowledges not
having received, any warranty or guaranty, expressed or implied, as to the
potential volume, profits, or success of the business venture contemplated by
this Agreement.

      13.02.   Developer acknowledges that Developer has received, read, and
understands this Agreement, the exhibits hereto, and agreements relating hereto,
if any; and the Franchisor has

                                       14
<PAGE>

accorded Developer ample time and opportunity to consult with advisors of
Developer's own choosing about the potential benefits and risks of entering into
this Agreement.

     13.03.    Developer acknowledges that Developer has received a complete
copy of this Agreement, the exhibits hereto, and agreements relating hereto, if
any, at least five (5) business days prior to the date upon which this Agreement
was executed. Developer further acknowledges that Developer has received the
Uniform Franchise Offering Circular required by the Trade Regulation Rule of the
Federal Trade Commission entitled "Disclosure Requirements and Prohibitions
concerning Franchising and Business Opportunity Ventures" at least ten (10)
business days prior to the date on which this Agreement was executed.

XIV. SEVERABILITY AND CONSTRUCTION

     14.01.    Except as expressly provided to the contrary herein, each
portion, section, part, term, and/or provision of this Agreement shall be
considered severable; and if, for any reason, any section, part, term, and/or
provision herein is determined to be invalid and contrary to, or in conflict
with, any existing or future law or regulation by a court or agency having valid
jurisdiction, such shall not impair the operation, or have any other effect
upon, such other portions, sections, parts, terms, and/or provisions of this
Agreement as may remain otherwise intelligible, and the latter shall continue to
be given full force and effect to bind the parties; and said invalid portions,
sections, parts, terms, and/or provisions shall be deemed not to be part of this
Agreement.

     14.02.    Except as has been expressly provided to the contrary herein,
nothing in this Agreement is intended, nor shall be deemed, to confer upon any
person or legal entity other than Developer, Franchisor, Franchisor's officers,
directors, and employees, and Developer's and Franchisor's respective successors
and assigns as may be contemplated (and, as to Developer, permitted) by Section
VI hereof, any rights or remedies under or by reason of this Agreement.

     14.03.    Developer expressly agrees to be bound by any covenant or promise
imposing the maximum duty permitted by law which is subsumed within the terms of
any provision hereof, as though it were separately articulated in and made a
part of this Agreement, that may result from striking from any of the provisions
hereof any portion or portions which a court will hold to be unreasonable and
unenforceable in a final decision to which Franchisor is a party, or from
reducing the scope of any promise or covenant to the extent required to comply
with such court order.

     14.04.    All captions in this Agreement are intended solely for the
convenience of the parties, and none shall be deemed to affect the meaning or
construction of the provisions hereof.

     14.05.    All provisions of this Agreement which, by their terms or intent,
are designed to survive the expiration or termination of this Agreement, shall
so survive the expiration and/or termination of this Agreement.

                                       15
<PAGE>

     14.06.    This Agreement may be executed in multiple originals and each
copy so executed deemed an original.

XV.  ENTIRE AGREEMENT AND APPLICABLE LAW

     15.01.    This Agreement, the documents referred to herein, and the
exhibits hereto, constitute the entire, full, and complete agreement between
Franchisor and Developer concerning the subject matter hereof and supersede any
and all prior agreements. Except for those permitted to be made unilaterally by
Franchisor hereunder, no amendment, change, or variance from this Agreement
shall be binding on either party unless mutually agreed to by the parties and
executed by their authorized officers or agents in writing.

     15.02.    Applicable Law. This Agreement takes effect upon its acceptance
and execution by Franchisor and shall be interpreted and construed under the
laws of the State of Georgia which laws shall prevail in the event of any
conflict of law (without regard to, and without giving effect to, the
application of Georgia choice of law or conflict of law rules); provided,
however, that if the covenants in Article VIII of this Agreement would not be
enforceable under the laws of Georgia, then such covenants shall be interpreted
and construed under the laws of the State in which the Developer operates the
Franchised Units developed hereunder, or in the State where Developer is
domiciled if Developer, at such time, is not operating any Franchised Units.
Nothing in this Section XV is intended by the parties to subject this Agreement
to any franchise or similar law, rule, or regulation of the State of Georgia to
which this Agreement would not otherwise be subject.

     15.03.    The parties agree that any action brought by Developer against
Franchisor in any court, whether federal or state, shall be brought within such
state and in the judicial district in which Franchisor has its principal place
of business. Any action brought by Franchisor against Developer in any court,
whether federal or state, may be brought within the state and in the judicial
district in which Franchisor has its principal place of business. Developer
hereby waives all questions of personal jurisdiction or venue for the purpose of
carrying out this provision.

     15.04.    No right or remedy herein conferred upon or reserved to
Franchisor is exclusive of any other right or remedy herein, or by law or equity
provided or permitted; but each shall be cumulative of any other right or remedy
provided in this Agreement.

     15.05.    Nothing herein contained shall bar Franchisor's right to obtain
injunctive relief against threatened conduct that will cause it loss or damages,
under the usual equity rules, including the applicable rules for obtaining
restraining orders and preliminary injunctions.

                                       16
<PAGE>

          IN WITNESS WHEREOF, the parties hereto, intending to be legally bound
hereby, have duly executed, sealed, and delivered this Agreement in multiple
originals as of the day and year first above-written.

AFC ENTERPRISES, INC.                        DEVELOPER:

By:__________________________                By:___________________________

Title:_______________________                Title:________________________

                                       17
<PAGE>

                                   EXHIBIT A
                             DEVELOPMENT SCHEDULE

                                              CUMULATIVE
NUMBER OF                                     NUMBER OF
FRANCHISED                                    FRANCHISED
RESTAURANTS                                   RESTAURANTS
TO BE OPENED AND                              TO BE OPEN AND IN
IN OPERATION             DATE OPENED          OPERATION
------------             -----------          ---------

                         TO BE INITIALED BY BOTH PARTIES:

                         FRANCHISOR: ________   DEVELOPER: _______

<PAGE>

                                   EXHIBIT B

                        Description of Development Area
                        -------------------------------

(The following are specifically excluded from the Development Area: military
bases, public transportation facilities, toll road plazas, universities,
recreational theme parks and the interior-structural confines of shopping
malls).

                        TO BE INITIALED BY BOTH PARTIES

                                   FRANCHISOR: ________   DEVELOPER: _______

<PAGE>

                                   EXHIBIT C

                              FRANCHISE AGREEMENT
                              -------------------

<PAGE>

                                                                    EXHIBIT 10.5

                      AMENDMENT TO DEVELOPMENT AGREEMENT
                     (Non-Exclusive Development Agreement)

     THIS AMENDMENT TO DEVELOPMENT AGREEMENT (this "Amendment") is made and
entered into this ____ day of ___________________, 2000 by and between AFC
ENTERPRISES, INC., a Minnesota corporation, with its principal offices at Six
Concourse Parkway, Suite 1700, Atlanta, Georgia  30328-5352 (hereinafter
referred to as "Franchisor") and ___________________________________, with a
mailing address at __________________________(hereinafter referred to as
"Developer").

                              W I T N E S S E T H:
                              -------------------

     WHEREAS, Developer and Franchisor entered into a Churchs Chicken
Development Agreement dated ___________ (hereinafter the "Development
Agreement"); and

     WHEREAS, Developer and Franchisor desire to amend the terms and conditions
of the Development Agreement as hereinafter set forth;

     NOW, THEREFORE, in consideration of the mutual covenants and conditions
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree to
amend the Development Agreement as follows:

     1.  This Amendment shall be attached to, incorporated in, and become a part
of, the Development Agreement.  The terms and conditions stated in this
Amendment, to the extent they are inconsistent with the terms and conditions
stated in the Development Agreement, shall prevail over the terms of the
Development Agreement.

     2.  Section 1.01 of the Development Agreement is hereby deleted in its
entirety and the following new provision is inserted in lieu thereof:

     "1.01.  Franchisor hereby grants the Developer, subject to the terms and
conditions of this Development Agreement and as long as Developer shall not be
in default of this Agreement or any other development, franchise or other
agreement between Developer and Franchisor, non-exclusive development rights to
obtain franchises to establish and operate _________ Franchised Units, and to
use the CHURCHS System solely in connection therewith, at specific locations to
be designated in separate franchise agreements ("Franchise Agreements"),
executed as provided in Section 3.01. hereof, and pursuant to the schedule set
forth in Exhibit A to this Agreement ("Development Schedule").  Each Franchised
         ---------
Unit developed pursuant hereto shall be located in the area described in Exhibit
                                                                         -------
B hereto ("Development Area")."
-
<PAGE>

     3.   Section 1.02 of the Development Agreement is hereby deleted in its
entirety and the following new provision is inserted in lieu thereof:

          "1.02  This Agreement is non-exclusive.  Franchisor retains the right
          at all times to establish or to license others to establish Franchised
          Units in the Development Area."

     4.   This Amendment and the documents referred to herein, constitute the
entire, full and complete agreement between Franchisor and Developer concerning
the subject matter hereof and supersede any and all prior agreements.  No other
representations have induced Developer to execute this Amendment, and there are
no representations, inducements, promises, or agreements, oral or otherwise,
between the parties not embodied herein which are of any force or effect with
reference to this Amendment or otherwise.  No amendment, change, or variance
from this Amendment shall be binding on either party unless executed in writing.

     5.   The Development Agreement and this Amendment shall be governed by the
laws of the State of Georgia, without regard to application of Georgia choice of
law rules.

     6.   The Development Agreement shall remain in full force and effect except
as specifically amended herein.

     IN WITNESS WHEREOF, the parties hereto intending to be legally bound hereby
have executed this Amendment in triplicate on the day and year first written.

WITNESS:                           FRANCHISOR:
                                   AFC ENTERPRISES, INC.

__________________________         By:___________________________________
                                        Hala Moddelmog
                                        President - Churchs Chicken
                                        Division

WITNESS:                           DEVELOPER:

__________________________        ___________________________________

                                       2<PAGE>

                                                                    EXHIBIT 10.6

                                  S A M P L E

                                CHURCHS CHICKEN
                              FRANCHISE AGREEMENT

                                    BETWEEN

                             AFC ENTERPRISES, INC.

                                      AND

                      ___________________________________

                                                           Unit No.: ___________
                                                           Dev. Agr. No.: ______
                                                           Dated: ______________
<PAGE>

                             AFC ENTERPRISES, INC.

                                CHURCHS CHICKEN

                              FRANCHISE AGREEMENT

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                        <C>
I.     APPOINTMENT........................................................   2
II.    TERM...............................................................   3
III.   FEES...............................................................   4
IV.    ACCOUNTING AND RECORDS.............................................   6
V.     PROPRIETARY MARKS..................................................   7
VI.    OBLIGATIONS OF CORPORATE OR PARTNERSHIP FRANCHISEE.................  10
VII.   CONFIDENTIAL OPERATING STANDARDS MANUAL............................  10
VIII.  TRAINING...........................................................  11
IX.    DUTIES OF THE FRANCHISOR...........................................  12
X.     DUTIES OF THE FRANCHISEE...........................................  12
XI.    INSURANCE..........................................................  17
XII.   CONFIDENTIAL INFORMATION...........................................  20
XIII.  COVENANTS..........................................................  20
XIV.   TRANSFERABILITY OF INTEREST........................................  22
XV.    TERMINATION........................................................  25
XVI.   EFFECT OF TERMINATION OR EXPIRATION................................  28
XVII.  TAXES, PERMITS, AND INDEBTEDNESS...................................  30
XVIII. INDEPENDENT CONTRACTOR AND INDEMNIFICATION.........................  30
XIX.   APPROVALS AND WAIVERS..............................................  31
XX.    NOTICES............................................................  31
XXI.   SEVERABILITY AND CONSTRUCTION......................................  32
XXII.  ENTIRE AGREEMENT:  SURVIVAL........................................  33
XXIII. ACKNOWLEDGMENTS....................................................  33
XXIV.  APPLICABLE LAW:  VENUE.............................................  34
XXV.   CORPORATE FRANCHISEE...............................................  35
</TABLE>

                                       i
<PAGE>

                             AFC ENTERPRISES, INC.

                                CHURCHS CHICKEN
                              FRANCHISE AGREEMENT

     THIS AGREEMENT (the "Agreement") is made this ____ day of __________, 20__,
by and between AFC ENTERPRISES, INC. (f/k/a America's Favorite Chicken Company),
a Minnesota corporation, having its principal place of business at Six Concourse
Parkway, Suite 1700, Atlanta, Georgia, 30328-5352, U.S.A. ("Franchisor" or
"Churchs") and ________________________________________________________________
[jointly and severally where more than one], ("Franchisee").

                                  WITNESSETH:

     WHEREAS, Franchisor has developed and owns a unique system for opening and
operating restaurants specializing in fried chicken and other menu items
developed and owned by Franchisor (the "Churchs System" or "System");

     WHEREAS, the distinguishing characteristics of Franchisor's Churchs System
include, without limitation, the names "Churchs" and "Churchs Chicken";
specially designed buildings, distinctive interior and exterior layouts, decor,
color schemes, and furnishings; confidential food formulae and recipes used in
the preparation of food products and, particularly, a unique seasoning and
batter formula for preparing Churchs chicken; specialized menus; standards and
specifications for equipment, equipment layouts, products, operating procedures,
and management programs, all of which may be changed, improved, and further
developed by Franchisor from time to time;

     WHEREAS, Franchisor identifies the Churchs System by means of certain trade
names, service marks, trademarks, logos, emblems, and other indicia of origin,
including, but not limited to, the mark "Churchs" and "Churchs Chicken" and such
other trade names, service marks, trademarks and trade dress as are now, or may
hereafter, be designated by Franchisor for use in connection with the Churchs
System (collectively referred to as the "Proprietary Marks");

     WHEREAS, Franchisor continues to develop, use, and control the use of such
Proprietary Marks in order to identify for the public the source of services and
products marketed thereunder in the Churchs System and to represent the System's
high standards of quality, appearance, and service;

     WHEREAS, Franchisee wishes to be assisted, trained, and licensed by
Franchisor as a Churchs franchisee and licensed to use, in connection therewith,
the Churchs System;

     WHEREAS, Franchisee understands the importance of the Churchs System and
Churchs high and uniform standards of quality, cleanliness, appearance, and
service, and the necessity of opening and operating Churchs Restaurants in
conformity with the Churchs System;

     NOW, THEREFORE, the parties hereto agree as follows:
<PAGE>

I.          APPOINTMENT

     1.01.  Franchisor grants to Franchisee a franchise to open and operate a
Churchs Chicken  restaurant (the "Unit", "Franchised Unit", "Franchised
Business" or "Restaurant") at one location only, such location to be described
as:

Store Number:   __________________________________________________

Address:        __________________________________________________

                __________________________________________________

                __________________________________________________

                __________________________________________________

upon the terms and conditions herein contained and subject to the terms and
conditions contained in the development agreement between Franchisor and
Franchisee, dated __________________________, (the "Development Agreement"),
which is incorporated herein by reference; and a license to use in connection
therewith Franchisor's Proprietary Marks and the Churchs System.

     1.02.  Protected Territory.
            --------------------

            1.  Subject to the terms and conditions of this Agreement and
                provided Franchisee is not otherwise in default of this
                Agreement and/or any other Agreement between Franchisor (or any
                parent, subsidiary or affiliate of Franchisor) and Franchisee
                (or any parent, subsidiary or affiliate of Franchisee),
                Franchisor shall not establish, nor franchise another to
                establish a restaurant under the Churchs System, for the term of
                this Agreement, within the area described in Exhibit "C" of this
                Agreement (the "Protected Area"), without Franchisees prior
                written consent. Notwithstanding the foregoing, Franchisor may,
                from time to time during the term hereof, reduce or modify the
                Protected Area to encompass a geographic area immediately
                surrounding the Franchised Unit which shall include a population
                (residential and/or daytime business or commercial) of no less
                than 50,000 people, which modification shall become effective
                upon Franchisee's receipt of written notice from Franchisor to
                Franchisee.

            2.  The provisions of Section 1.02 (A) hereof shall not apply if the
                Franchised Unit is operated in any of the following types of
                locations and/or with respect to such locations within the
                Protected Area, at which Franchisor retains the right, in its
                sole discretion, to franchise and/or operate Churchs Chicken
                restaurants, and to distribute by any means Churchs Chicken
                products:

                    1.   Existing Franchised Units and/or Franchised Units for
                         which Franchise Agreements were previously executed
                    2.   Transportation facilities (including airports, train
                         stations, bus stations, etc.)
                    3.   Toll roads and major thoroughfares

                                       2
<PAGE>

                    4.   Educational facilities (including schools, colleges and
                         universities)
                    5.   Institutional feeding facilities (including, but not
                         limited to, airports, hospitals, hotels, and corporate
                         or school cafeterias
                    6.   Government institutions and facilities
                    7.   Enclosed shopping malls
                    8.   Military bases
                    9.   Casinos
                    10.  Amusement and/or theme parks

     1.03.  Except as otherwise set forth herein, (a) the franchise granted to
Franchisee under this Agreement is non-exclusive, and grants to Franchisee the
rights to establish and operate the Franchised Unit at only the specific
location set forth hereinabove, (b) no exclusive, protected or other territorial
rights in the contiguous area or market of such Franchised Unit or otherwise is
hereby granted or to be inferred and (c) Franchisor and/or its affiliates have
the right to operate and grant as many other franchises for the operation of
Churchs Chicken restaurants, anywhere in the world, as they shall, in their sole
discretion, elect.

II.         TERM

     2.01.  Except as otherwise provided in this Agreement, the initial term of
this Franchise Agreement (the "Term") shall expire on the twentieth (20th)
anniversary of the date of commencement of operation of the Franchised Unit.
For all purposes under this Agreement, the date of commencement of operation of
the Franchised Unit shall be the date verified in writing by Franchisor and
delivered to Franchisee in a form substantially similar to the  Notice  attached
hereto as Exhibit A.  Franchisee agrees and shall be obligated to operate the
Franchised Unit and perform hereunder for the full Term of this Agreement.

     2.02.  Franchisee may, at its option, renew this franchise for one (1)
additional period of ten (10) years, provided that, at the time of renewal:

            A.   Franchisee gives Franchisor written notice of such election to
                 renew not less than six (6) months nor more than twelve (12)
                 months prior to the end of the initial term;

            B.   Franchisee executes Franchisor's then-current standard form of
                 franchise agreement, which may include, without limitation, a
                 higher royalty fee and a higher advertising contribution, if
                 any, than that contained in this Agreement; and the term of
                 which shall be the renewal term as specified in Section 2.02.
                 hereof, but shall contain no further renewal rights;

            C.   Franchisee executes a general release in a form prescribed by
                 Franchisor of any and all claims against Franchisor and its
                 subsidiaries, and affiliates, and their respective officers,
                 directors, agents, and employees;

            D.   Franchisee is not in default of any provision of this
                 Agreement, or any amendment hereof or successor hereto, or any
                 other agreement between Franchisee and Franchisor, or any
                 subsidiary or affiliate of Franchisor, and Franchisee has fully
                 and faithfully performed all of Franchisee's obligations
                 throughout the term of this Agreement;

                                       3
<PAGE>

            E.   Franchisee has paid or otherwise satisfied all monetary
                 obligations owed by Franchisee to Franchisor and its
                 subsidiaries and affiliates and any indebtedness of Franchisee
                 which is guaranteed by Franchisor, and Franchisee has timely
                 paid or otherwise satisfied these obligations throughout the
                 term of this Agreement;

            F.   Franchisee agrees, at its sole cost and expense, to reimage,
                 renovate, refurbish and modernize the Franchised Unit, within
                 the time frame required by Franchisor, including building
                 design, parking lot, landscaping, equipment, signs, interior
                 and exterior decor items, fixtures, furnishings, trade dress,
                 color scheme, presentation of trademarks and service marks,
                 supplies and other products and materials to meet Franchisor's
                 then-current standards, specifications and design criteria for
                 Churchs restaurants, as contained in the then-current franchise
                 agreement, Confidential Operating Standards Manual (as defined
                 herein), or otherwise in writing, including, without
                 limitation, such structural changes, remodeling and
                 redecoration and such modifications to existing improvement as
                 may be necessary to do so.

            G.   Franchisee shall pay to Franchisor a renewal fee equal to fifty
                 percent (50%) of Franchisor's standard initial franchise fee in
                 effect at the date of renewal.

III.        FEES

     3.01.  In consideration of the franchise granted to Franchisee herein,
Franchisee shall pay to the Franchisor the following:

            A.   A franchise fee of Fifteen Thousand Dollars ($15,000) payable
                 upon execution of this Agreement by Franchisee. Such franchise
                 fee shall be fully earned by Franchisor upon execution of this
                 Agreement by Franchisee and is in addition to any development
                 fees paid to Franchisor by Franchisee.

            B.   A recurring, non-refundable royalty fee of five percent (5%) of
                 Gross Sales (as defined herein) during the term of this
                 Agreement, payable weekly (or on such other basis as may be set
                 forth in the Confidential Operating Standards Manual (as
                 defined herein) or otherwise agreed to in writing by
                 Franchisor) on the Gross Sales of the preceding week.

     3.02.  In addition to the payments provided for in Section 3.01. hereof,
Franchisee, recognizing the value of advertising and the importance of the
standardization of advertising and promotion to the goodwill and public image of
the System, agrees to pay to the Churchs Advertising Fund ("Advertising Fund") a
recurring, non-refundable advertising fund contribution ("Advertising Fund
Contribution") in an amount to be determined by Franchisor, in its sole
discretion, not to exceed four percent (4%) of the Gross Sales for the preceding
week (or an Advertising Fund Contribution not to exceed one percent (1%) of such
Gross Sales if the Franchised Unit participates in an advertising cooperative
pursuant to Section 10.05.) payable weekly (or on such other basis as may be set
forth in the Confidential Operating Standards Manual or otherwise agreed to in
writing by Franchisor).  The Advertising Fund Contribution shall be expended by

                                       4
<PAGE>

the Advertising Fund for national, regional, and/or local advertising and
promotional materials and market research for the Churchs System, under the
following conditions and limitations:

          A.   The Advertising Fund, all contributions thereto, and any earnings
               thereon, shall be used exclusively to pay any and all costs of
               maintaining, administering, directing, producing and preparing
               market research, advertising, marketing materials and/or
               promotional activities for the Churchs System.  Franchisee shall
               pay the Advertising Fund Contribution by separate check made
               payable to the Advertising Fund.  All sums paid by the Franchisee
               to the Advertising Fund shall be maintained in an account
               separate from other funds of Franchisor and shall not be used to
               defray any of Franchisor's expenses except as provided  herein,
               and as Franchisor may incur in activities reasonably related to
               the administration or direction of the Advertising Fund and
               advertising and marketing programs for franchisees and the
               Churchs System.  The Advertising Fund and its earnings shall not
               otherwise inure to the benefit of Franchisor. Franchisor shall
               maintain a separate bookkeeping account for the Advertising Fund.

          B.   The selection of media and locale for media placement shall be at
               the sole discretion of the Franchisor.

          C.   All reasonable costs incurred by Franchisor or charged to
               Franchisor by third parties for market research and the
               production and dissemination of advertising, marketing and
               promotional materials may be charged to the Advertising Fund.

          D.   Franchisor, upon request, shall provide Franchisee with an annual
               accounting of receipts and disbursements of the Advertising Fund.

          E.   It is anticipated that all contributions to and earnings of the
               Advertising Fund will be expended for market research,
               advertising, marketing and/or promotional purposes during the
               taxable year in which contributions and earnings are received.
               If, however, excess amounts remain in the Advertising Fund at the
               end of a taxable year, all expenditures in the following taxable
               year(s) shall be made first out of accumulated earnings from
               previous years, next out of earnings in the current year, and
               finally from contributions.

          F.   The Advertising Fund is not, and shall not be, an asset of
               Franchisor.  Although the Advertising Fund is intended to be of
               perpetual duration, Franchisor maintains the right to terminate
               the Advertising Fund; provided, however, that the Advertising
               Fund shall not be terminated until all monies in the Advertising
               Fund have been expended for the purposes stated herein.

          G.   Franchisee understands that such advertising and marketing is
               intended to maximize the public's awareness of the Franchised
               Units and the System, and that Franchisor accordingly undertakes
               no obligation to insure that any individual Franchisee benefits
               directly or on a pro rata basis from the placement, if any, of
               such advertising or marketing in its local market.  Franchisee
               further acknowledges that its failure to derive any such benefit,
               whether directly or indirectly, shall not be

                                       5
<PAGE>

               cause for Franchisee's nonpayment or reduction of the required
               contributions to the Advertising Fund.

     3.03.  If any monetary obligations owed by Franchisee to Franchisor and its
subsidiaries and affiliates are more than seven (7) days overdue, Franchisee
shall, in addition to such obligations, pay to Franchisor a sum equal to one and
one-half percent (1 %) of the overdue balance per month, or the highest rate
permitted by law, whichever is less, from the date said payment is due.

     3.04.  For the purposes of this Agreement, the term "Gross Sales" shall
mean all revenues generated by Franchisee's business conducted upon, from or
with respect to the Franchised Unit, whether such sales are evidenced by cash,
check, credit, charge, account, barter or exchange.  Gross Sales shall include,
without limitation, monies or credit received from the sale of food and
merchandise, from tangible property of every kind and nature, promotional or
otherwise, and for services performed from or at the Franchised Unit, including
without limitation such off-premises services as catering and delivery.  Gross
Sales shall not include the sale of food or merchandise for which refunds have
been made in good faith to customers, the sale of equipment used in the
operation of the Franchised Unit, nor shall it include sales, meals, use or
excise tax imposed by a governmental authority directly on sales and collected
from customers; provided that the amount for such tax is added to the selling
price or absorbed therein, and is actually paid by Franchisee to such
governmental authority.

IV.         ACCOUNTING AND RECORDS

     4.01.  Accurate Books and Records.  During the Term of this Agreement,
Franchisee shall maintain and preserve, for at least three (3) years from the
dates of their preparation, full, complete and accurate books, records and
accounts in accordance with generally accepted accounting principles and in the
form and the manner prescribed by Franchisor from time-to-time in the
Confidential Operating Standards Manual or otherwise in writing.  These records
shall include, without limitation, cash register sales tape (including non-
resettable readings), meals, sales and other tax returns, duplicate deposit
slips and other evidence of Gross Sales and all other business transactions.

     4.02.  Royalty Reports.  Franchisee shall submit to Franchisor, no later
than the date each weekly royalty payment is due during the Term of this
Agreement, a report on forms prescribed by Franchisor, accurately reflecting all
Gross Sales during the preceding week and such other forms, reports, records,
financial statements or information as Franchisor may reasonably require in the
Confidential Operating Standards Manual, or otherwise in writing.

     4.03.  Quarterly Statement.  Franchisee shall, at its expense, submit to
Franchisor quarterly, within thirty (30) days following the end of each quarter
during the Term hereof, an unaudited financial statement with such detail as
Franchisor may reasonably require (hereinafter, "Quarterly Statement") together
with a certificate executed by Franchisee stating that such financial statement
is true and accurate.  Upon Franchisor's request, Franchisee shall submit to
Franchisor, with each Quarterly Statement, copies of any state or local sales
tax returns ("Sales Tax Returns") filed by Franchisee for the period included in
the Quarterly Statement.  In the event Franchisee prepares financial statements
on the basis of thirteen (13), four (4) week periods ("Periods"), the Quarterly
Statements shall be submitted within thirty (30) days following the end of the
third (3rd), sixth (6th), ninth (9th) and thirteenth (13th) Periods.

                                       6
<PAGE>

     4.04.  Annual Financial Statements.  Franchisee shall, at its expense,
submit to Franchisor within ninety (90) days following the end of each calendar
or fiscal year during the Term of this Agreement, an unaudited financial
statement for the preceding calendar or fiscal year, together with a certificate
executed by Franchisee certifying that such financial statement is true and
accurate (hereinafter, "Annual Financial Statements") and such other information
in such form as Franchisor may reasonably require.  Upon written request from
Franchisor, the foregoing Annual Financial Statement shall include both a profit
and loss statement and a balance sheet, and shall be prepared in accordance with
generally accepted accounting principles.  In the event Franchisee defaults
under this Agreement, Franchisor may require, upon written notice to Franchisee,
that all Annual Financial Statements submitted thereafter include a "Review
Report" prepared by an independent Certified Public Accountant.

     4.05.  Other Reports.  Franchisee shall also submit to Franchisor, for
review or auditing, such other forms, financial statements, reports, records,
information and data as Franchisor may reasonably designate, in the form and at
the times and places reasonably required by Franchisor, upon request and as
specified from time-to-time in the Confidential Operating Standards Manual or
otherwise in writing.  If Franchisee has combined or consolidated financial
information relating to the Franchised Unit with that of any other business or
businesses, including a business licensed by Franchisor, Franchisee shall
simultaneously submit to Franchisor, for review or auditing, the forms, reports,
records and financial statements (including, but not limited to the Quarterly
Statements and Annual Financial Statements) which contain the detailed financial
information relating to the  Franchised Unit, separate and apart from the
financial information of such other businesses.  Franchisee hereby authorizes
all of its suppliers and distributors to release to Franchisor, upon
Franchisor's request, any and all of its books, records, accounts or other
information relating to goods, products and supplies sold to Franchisee and/or
the Franchised Unit.

     4.06.  Equipment.  Franchisee shall record all sales on cash registers or
other point-of-sale equipment approved, in writing, by Franchisor (hereinafter
"POS Equipment").

     4.07.  Franchisor's Right of Audit.   Franchisor or its designated agents
or auditors shall have the right at all reasonable times to audit, review and
examine by any means, including electronically through the use of
telecommunications devices or otherwise, at its expense, the books, records,
accounts, and tax returns of Franchisee related to the Franchised Unit.  If any
such audit, review or examination reveals that Gross Sales have been understated
in any report to Franchisor, Franchisee shall immediately pay to Franchisor the
royalty fee and Advertising Fund Contribution due with respect to the amount
understated upon demand, in addition to interest from the date such amount was
due until paid, at the rate of one and one-half percent (1.5%) per month.  If
any such understatement exceeds two percent (2%) of Gross Sales as set forth in
the report, Franchisee shall, in addition, upon demand, reimburse Franchisor for
any and all costs and expenses connected with such audit, review or examination
(including, without limitation, reasonable accounting and attorneys' fees).
The foregoing remedies shall be in addition to any other rights and remedies
Franchisor may have.

V.          PROPRIETARY MARKS

     5.01.  It is understood and agreed that the franchise granted herein to use
Franchisor's Proprietary Marks applies only to use in connection with the
operation of the Franchised Unit franchised in this Agreement at the location
designated in Section I hereof, and includes only such Proprietary Marks as are

                                       7
<PAGE>

now designated or which may hereafter be designated, in the Confidential
Operating Standards Manual or otherwise in writing as a part of the System
(which might or might not be all of the Proprietary Marks pertaining to the
System owned by the Franchisor), and does not include any other mark, name, or
indicia of origin of Franchisor now existing or which may hereafter be adopted
or acquired by Franchisor.

     5.02.  With respect to Franchisee's use of the Proprietary Marks pursuant
to this Agreement, Franchisee acknowledges and agrees that:

            A.   Franchisee shall not use the Proprietary Marks as part of
                 Franchisee's corporate or other business name;

            B.   Franchisee shall not hold out or otherwise use the Proprietary
                 Marks to perform any activity or incur any obligation or
                 indebtedness in such manner as might, in any way, make
                 Franchisor liable therefor, without Franchisor's prior written
                 consent;

            C.   Franchisee shall execute any documents and provide such other
                 assistance deemed necessary by Franchisor or its counsel to
                 obtain protection for the Proprietary Marks or to maintain the
                 continued validity of such Proprietary Marks; and

            D.   Franchisor reserves the right to substitute different
                 Proprietary Marks for use in identifying the System and the
                 franchised businesses operating thereunder, and Franchisee
                 agrees to immediately substitute Proprietary Marks upon receipt
                 of written notice from Franchisor.

     5.03.  Franchisee expressly acknowledges Franchisor's exclusive right to
use the mark Churchs for restaurant services, fried chicken, and other related
food products; the building configuration; and the other Proprietary Marks of
the System.  Franchisee agrees not to represent in any manner that it has any
ownership in the Proprietary Marks or the right to use the Proprietary Marks
except as provided in this Agreement.  Franchisee further agrees that its use of
the Proprietary Marks shall not create in its favor any right, title, or
interest in or to the Proprietary Marks, and that all of such use shall inure to
the benefit of Franchisor.

     5.04.  Franchisee acknowledges that the use of the Proprietary Marks
outside the scope of this license, without Franchisor's prior written consent,
is an infringement of Franchisor's exclusive right to use the Proprietary Marks,
and during the term of this Agreement and after the expiration or termination
hereof, Franchisee covenants not to, directly or indirectly, commit an act of
infringement or contest or aid in contesting the validity or ownership of
Franchisor's Proprietary Marks, or take any other action in derogation thereof.

     5.05.  Franchisee shall promptly notify Franchisor of any suspected
infringement of, or challenge to, the validity of the ownership of, or
Franchisor's right to use, the Proprietary Marks licensed hereunder.  Franchisee
acknowledges that Franchisor has the right to control any administrative
proceeding or litigation involving the Proprietary Marks.  In the event
Franchisor undertakes the defense or prosecution of any litigation relating to
the Proprietary Marks, Franchisee agrees to execute any and all documents and to
do such acts and things as may, in the opinion of counsel for Franchisor, be
necessary to carry out such defense or prosecution.  Except to the extent that
such litigation is the result of Franchisee's use of the Proprietary Marks in a
manner inconsistent with the terms of this Agreement, Franchisor agrees to
reimburse Franchisee

                                       8
<PAGE>

for its out of pocket costs in doing such acts and things, except that
Franchisee shall bear the salary costs of its employees.

     5.06.  Franchisee understands and agrees that its license with respect to
the Proprietary Marks is non-exclusive to the extent that Franchisor has and
retains the right under this Agreement:

            A.   To grant other licenses for the Proprietary Marks, in addition
                 to those licenses already granted to existing franchisees;

            B.   To develop and establish other franchise systems for the same,
                 similar, or different products or services utilizing
                 proprietary marks not now or hereafter designated as part of
                 the System licensed by this Agreement, and to grant licenses
                 thereto, without providing Franchisee any right therein; and

            C.   To develop and establish other systems for the sale, at
                 wholesale or retail, of similar or different products utilizing
                 the same or similar Proprietary Marks, without providing
                 Franchisee any right therein.

     5.07.  Franchisee acknowledges and expressly agrees that any and all
goodwill associated with the System and identified by the Proprietary Marks used
in connection therewith shall inure directly and exclusively to the benefit of
Franchisor and is the property of Franchisor, and that upon the expiration or
termination of this Agreement or any other agreement, no monetary amount shall
be assigned as attributable to any goodwill associated with any of Franchisee's
activities in the operation of the Franchised Unit granted herein, or
Franchisee's use of the Proprietary Marks.

     5.08.  Franchisee understands and acknowledges that each and every detail
of the Churchs System is important to Franchisee, Franchisor, and other
franchisees in order to develop and maintain high and uniform standards of
quality and services, and hence to protect the reputation and goodwill of
Churchs restaurants.  Accordingly, Franchisee covenants:

            A.   To operate and advertise the Franchised Unit, at Franchisee's
                 own expense, under the name "Churchs Chicken," without prefix
                 or suffix;

            B.   To adopt and use the Proprietary Marks licensed hereunder
                 solely in the manner prescribed by Franchisor;

            C.   To observe such reasonable requirements with respect to
                 trademark registration notices as Franchisor may from time to
                 time direct in the Confidential Operating Standards Manual or
                 otherwise in writing.

     5.09.  In order to preserve the validity and integrity of the Proprietary
Marks licensed herein and to assure that Franchisee is properly employing the
same in the operation of the Franchised Unit, Franchisor or its agents shall at
all reasonable times have the right to inspect Franchisee's operations,
premises, and Franchised Unit and make periodic evaluations of the services
provided and the products sold and used therein.  Franchisee shall cooperate
with Franchisor's representatives in such inspections and render such assistance
to the representatives as may reasonably be requested.

                                       9
<PAGE>

VI.         OBLIGATIONS OF CORPORATE OR PARTNERSHIP FRANCHISEE

     6.01.  If Franchisee, or any successor to or assignee of Franchisee, is a
corporation, or limited liability company:

            A.   Franchisee shall furnish to Franchisor, upon execution or any
                 subsequent transfer of this Agreement, a copy of the
                 Franchisee's Articles of Incorporation, Certificate of
                 Incorporation, Bylaws and a list of shareholders showing the
                 percentage interest of each, and shall thereafter promptly
                 furnish Franchisor with a copy of any and all amendments or
                 modifications thereto;

            B.   Franchisee shall promptly furnish Franchisor, on a regular
                 basis, with certified copies of such corporate records material
                 to the Franchised Business as Franchisor may require from time
                 to time in the Confidential Operating Standards Manual or
                 otherwise in writing; and

            C.   Franchisee shall maintain stop-transfer instructions against
                 the transfer, on its records, of any securities with voting
                 rights, subject to the restrictions of this Agreement, and each
                 stock certificate of the corporate Franchisee representing each
                 share of stock, shall have conspicuously endorsed upon it the
                 following legend:

                    "The transfer of this stock is subject to the terms and
                    conditions of a Churchs Chicken Franchise Agreement
                    with AFC ENTERPRISES, INC. dated ___________. Reference
                    is made to the provisions of said Franchise Agreement
                    and to the Articles and By-Laws of this corporation."

     6.02.  If the Franchisee, or any successor to or assignee of Franchisee, is
a partnership, limited partnership or limited liability partnership, Franchisee
shall furnish to Franchisor, upon execution or any subsequent transfer of this
Agreement, a copy of Franchisee's Articles of Partnership, if any, and
Partnership Agreement, and shall thereafter promptly furnish Franchisor with a
copy of any and all amendments or modifications thereto.

VII.        CONFIDENTIAL OPERATING STANDARDS MANUAL.

     7.01.  In order to protect the reputation and goodwill of Franchisor and
the Churchs System and to maintain uniform standards of operation under
Franchisor's Proprietary Marks, Franchisee shall conduct the Franchised Business
in accordance with Franchisor's Confidential Operating Standards Manual
(hereinafter, together with any other manuals created or approved for use in the
operation of the Franchised Business granted herein, and all amendments and
updates thereto, the "Manual").

     7.02.  Franchisee shall at all times treat the Manual, and the information
contained therein, as confidential, and shall use all reasonable efforts to keep
such information secret and confidential.  Franchisee shall not, at any time,
without Franchisor's prior written consent, copy, duplicate, record, or
otherwise make the Manual available to any unauthorized person or entity.

                                       10
<PAGE>

     7.03.  The Manual shall at all times remain the sole property of
Franchisor.

     7.04.  In order for Franchisee to benefit from new knowledge information,
methods and technology adopted and used by Franchisor in the operation of the
System, Franchisor may from time-to-time revise the Manual and Franchisee agrees
to adhere to and abide by all such revisions.

     7.05.  Franchisee agrees at all times to keep its copy of the Manual
current and up-to-date, and in the event of any dispute as to the contents of
Franchisee's Manual, the terms of the master copy of the Manual maintained by
Franchisor at Franchisor's home office, shall be controlling.

     7.06.  The Manual is intended to further the purposes of this Agreement,
and is specifically incorporated, by reference, into this Agreement. Except as
otherwise set forth in this Agreement, in the event of a conflict between the
terms of this Agreement and the terms of the Manual, the terms of this Agreement
shall control.

VIII.       TRAINING

     8.01.  Franchisee, a partner of Franchisee if Franchisee is a partnership,
or a principal shareholder of Franchisee if Franchisee is a corporation, must
complete, to Franchisor's satisfaction, the Churchs New Franchisee Orientation
Program ("NFOP") prior to opening the first franchised Churchs Chicken unit
operated by Franchisee. NFOP shall consist of two (2) days of workshops and
seminars including CD-ROM instruction conducted at a training facility
designated by Franchisor.

     8.02.  In addition to completing the NFOP, Franchisee (or a partner or
principal shareholder of Franchisee), and up to four (4) designated management
employees of Franchisee, must attend and complete, to Franchisor's satisfaction,
the Churchs Management In Training program ("MIT"), prior to opening the
Franchised Unit. The exact number of Franchisee's management employees required
to attend and complete MIT shall be determined by Franchisor in its sole
discretion, but in no event shall the number be less than two (2). MIT shall
consist of up to five (5) weeks of in-store restaurant operations training at a
facility designated by Franchisor (a "Certified Training Facility") and certain
self-directed study programs. A management employee of Franchisee that
successfully completes MIT, shall be certified by Franchisor as an "MIT
Certified Manager".

     8.03.  Franchisee shall maintain the number of MIT Certified Managers
designated by the Franchisor in the employ of the Franchised Unit throughout the
term of this Agreement, which in no event shall be less than two (2). In the
event that Franchisee or any MIT Certified Manager ceases active employment at
the Franchised Unit, Franchisee must enroll a qualified replacement in the MIT
program within thirty (30) days of cessation of such individual's employment.
The replacement employee shall attend and complete the next regularly scheduled
MIT program to Franchisor's satisfaction.

     8.04.  The cost of conducting the NFOP and MIT programs (instruction and
required materials) shall be borne by Franchisor. All other expenses during NFOP
and MIT, including meals and lodging, wages and travel, shall be borne by
Franchisee.

                                      11
<PAGE>

     8.05.  Franchisor may make available to Franchisee or Franchisee's
employees, from time to time, such additional training programs as Franchisor,
in its sole discretion, may choose to conduct. Attendance at said training
programs may be mandatory. The cost of conducting such additional training
programs (instruction and required materials) shall be borne by Franchisor. All
other expenses during the training period, including meals and lodging, wages
and travel, shall be borne by the Franchisee.

IX.         DUTIES OF THE FRANCHISOR

     9.01.  Franchisor will make available to Franchisee such continuing
advisory assistance in the operation of the Franchised Business, in person or by
electronic or written bulletins made available from time to time, as Franchisor
may deem appropriate.

     9.02.  Franchisor, in its sole discretion, may provide opening assistance
to Franchisee at the Franchised Unit.

     9.03.  Franchisor will make available to Franchisee standard plans and
specifications to be utilized only in the construction of the Franchised Unit.
No modification to or deviations from the standard plans and specifications may
be made without the written consent of Franchisor. Franchisee shall obtain, at
its expense, further qualified architectural and engineering services to prepare
surveys, site and foundation plans, and to adapt the standard plans and
specifications to applicable local or state laws, regulations or ordinances.
Franchisee shall bear the cost of preparing plans containing deviations or
modifications from the standard plans.

     9.04.  Franchisor will loan one (1) copy of the Manual to Franchisee for
the duration of this Agreement, which the Manual contains the standards,
specifications, procedures and techniques of the Churchs System.

     9.05.  Franchisor will continue its efforts to maintain high and uniform
standards of quality, cleanliness, appearance and service at all Churchs
restaurants, to protect and enhance the reputation of the Churchs System and the
demand for the products and services of the System. Franchisor will establish
uniform criteria for approving suppliers; make every reasonable effort to
disseminate its standards and specifications to prospective suppliers of the
Franchisee upon the written request of the Franchisee, provided that Franchisor
may elect not to make available to prospective suppliers the standards and
specifications for such food formulae or equipment designs deemed by Franchisor
in its sole discretion to be confidential; and may conduct periodic inspections
of the premises and evaluations of the products used and sold at the Franchised
Unit and in all other Churchs restaurants.

     9.06.  Franchisor will provide training to Franchisee as set forth in
Article VIII hereof.

X.          DUTIES OF THE FRANCHISEE

     Franchisee understands and acknowledges that every detail of the System is
important to Franchisor, Franchisee and other franchisees in order to develop
and maintain high and uniform operating standards, to increase the demand for
Churchs products and services, and to protect the reputation and goodwill of
Franchisor. Accordingly, Franchisee agrees that:

                                      12
<PAGE>

     10.01.  Franchisee shall maintain, at all times during the term of this
Agreement, at Franchisee's expense, the premises of the Franchised Unit and all
fixtures, furnishings, signs, systems and equipment (hereinafter "improvements")
thereon or therein, in conformity with Franchisor's high standards and public
image and to make such additions, alterations, repairs, and replacements thereto
(but no others, without Franchisor's prior written consent) as may be required
by Franchisor, including but not limited to the following:

             A.   To keep the Franchised Unit in the highest degree of
                  sanitation and repair, including, without limitation, such
                  periodic repainting, repairs or replacement of impaired
                  equipment, and replacement of obsolete signs, as Franchisor
                  may reasonably direct;

             B.   To meet and maintain the highest governmental standards and
                  ratings applicable to the operation of the Franchised
                  Business;

             C.   At its sole cost and expense, to complete a full reimaging,
                  renovation, refurbishment and modernization of the Franchised
                  Unit, within the time frame required by Franchisor, but no
                  more often than once every seven (7) years, including the
                  building design, parking lot, landscaping, equipment, signs,
                  interior and exterior decor items, fixtures, furnishings,
                  trade dress, color scheme, presentation of trademarks and
                  service marks, supplies and other products and materials, to
                  meet Franchisor's then-current standards, specifications and
                  design criteria for Churchs restaurants, including without
                  limitation, such structural changes, remodeling and
                  redecoration and such modifications to existing improvements
                  as may be necessary to do so (hereinafter, a "Franchised Unit
                  Renovation"). Franchisee shall not be required to perform a
                  Franchised Unit Renovation if there are less than five (5)
                  years remaining on the term of this Agreement. Nothing herein
                  shall be deemed to limit Franchisee's other obligations,
                  during the term of this Agreement, to operate the Franchised
                  Unit in accordance with Franchisor's standards and
                  specifications for the Churchs System, including, but not
                  limited to, the obligations set forth in this Section X.

     10.02.  Franchisee shall operate the Franchised Unit in conformity with
such uniform methods, standards, and specifications as Franchisor may from time
to time prescribe in the Manual or otherwise in writing, to insure that the
highest degree of quality, service and cleanliness is uniformly maintained and
to refrain from any deviation therefrom and from otherwise operating in any
manner which reflects adversely on Franchisor's name and goodwill or on the
Proprietary Marks, and in connection therewith:

             A.   To maintain in sufficient supply, and use at all times, only
                  such ingredients, products, materials, supplies, and paper
                  goods as conform to Franchisor's standards and specifications,
                  and to refrain from deviating therefrom by using non-
                  conforming items, without Franchisor's prior written consent;

             B.   To sell or offer for sale only such products and menu items
                  that have been expressly approved for sale in writing by
                  Franchisor, meet Franchisor's uniform standards of quality and
                  quantity and as have been prepared in accordance with
                  Franchisor's

                                      13
<PAGE>

                  methods and techniques for product preparation; to sell or
                  offer for sale the minimum menu items specified in the Manual
                  or otherwise in writing; to refrain from any deviation from
                  Franchisor's standards and specifications for serving or
                  selling the menu items, without Franchisor's prior written
                  consent; upon thirty (30) days written notice from Franchisor,
                  to sell or offer for sale only such beverages produced by
                  Franchisor's Designated Beverage Supplier (as defined in
                  Section 10.03 below); and to discontinue selling or offering
                  for sale such items as Franchisor may, in its discretion,
                  disapprove in writing at any time;

             C.   To use the premises of the Franchised Unit solely for the
                  purpose of conducting the business franchised hereunder, and
                  to conduct no other business or activity thereon, whether for
                  profit or otherwise, without Franchisor's prior written
                  consent;

             D.   To keep the Franchised Unit open and in normal operation
                  during such business hours as Franchisor may prescribe in the
                  Manual or otherwise in writing;

             E.   To permit Franchisor or its agents, at any time during
                  ordinary business hours, to remove from the Franchised Unit
                  samples of any ingredients, products, materials, supplies, and
                  paper goods used in the operation of the Franchised Unit,
                  without payment therefor, in amounts reasonably necessary for
                  testing by Franchisor or an independent laboratory, to
                  determine whether such samples meet Franchisor's then-current
                  standards and specifications. In addition to any other
                  remedies it may have under this Agreement, Franchisor may
                  require Franchisee to bear the cost of such testing if any
                  such ingredient, products, materials, supplier or paper goods
                  have been obtained from a supplier not approved by Franchisor,
                  or if the sample fails to conform to Franchisor's
                  specifications;

             F.   To purchase, install and construct, at Franchisee's expense,
                  all improvements furnishings, signs and equipment specified in
                  the approved standard plans and specifications, and such other
                  furnishings, signs or equipment as Franchisor may reasonably
                  direct from time to time in the Manual or otherwise in
                  writing; and to refrain from installing or permitting to be
                  installed on or about the premises of the Franchised Unit,
                  without Franchisor's written consent, any improvements,
                  furnishings, signs or equipment not first approved in writing
                  as meeting Franchisor's standards and specifications;

             G.   To comply with all applicable federal, state and local laws,
                  regulations and ordinances pertaining to the operation of the
                  Franchised Business; and

             H.   Franchisee shall grant Franchisor and its agents the right to
                  enter upon the premises of the Franchised Unit at any time
                  during ordinary business hours for the purpose of conducting
                  inspections; cooperate with Franchisor's representatives in
                  such inspections by rendering such assistance as they may
                  reasonably request; and, upon notice from Franchisor or its
                  agents, and without limiting Franchisor's other rights under
                  this Agreement, take such steps as may be necessary
                  immediately to correct the deficiencies detected during any
                  such inspection, including, without limitation, immediately
                  desisting from the further use of any equipment, promotional

                                      14
<PAGE>

                  materials, products, or supplies that do not conform with
                  Franchisor's then-current specifications, standards, or
                  requirements.

     10.03.  Franchisee shall (i) purchase all ingredients, products, materials,
supplies, and other items required in the operation of the Franchised Business
which are or incorporate trade-secrets of Franchisor, as designated by
Franchisor ("Trade-Secret Products") only from Franchisor or suppliers
designated by Franchisor; and (ii) upon thirty (30) days prior written notice
that Franchisor has designated an exclusive beverage supplier for any or all
beverage products sold within the Churchs System ("Designated Beverage
Products"), Franchisee shall purchase all such Designated Beverage Products only
from Franchisor's designated beverage supplier ("Designated Beverage Supplier").

     10.04.  Franchisee shall purchase all ingredients, products, materials,
supplies, paper goods, and other items required for the operation of the
Franchised Business, except Trade-Secret Products and Designated Beverage
Products, solely from suppliers who demonstrate, to the continuing reasonable
satisfaction of Franchisor, the ability to meet Franchisor's reasonable
standards and specifications for such items; who possess adequate quality
controls and capacity to supply Franchisee's needs promptly and reliably; and
who have been approved in writing by Franchisor and such approval has not
thereafter been revoked. If Franchisee desires to purchase any such items from
an unapproved supplier, Franchisee shall submit to Franchisor a written request
for approval, or shall request the supplier itself to seek approval. Franchisor
shall have the right to require, as a condition of its approval, that its
representatives be permitted to inspect the supplier's facilities, and that
samples from the supplier be delivered, at Franchisor's option, either to
Franchisor or to an independent laboratory designated by Franchisor for testing
prior to granting approval. A charge not to exceed Franchisor's reasonable cost
of inspection and the actual cost of testing shall be paid by the supplier or
Franchisee. Franchisor reserves the right, at its option, to reinspect the
facilities and products of any such approved supplier from time to time and to
revoke its approval upon failure of such supplier to continue to meet any of the
foregoing criteria.

     10.05.  Franchisor shall have the right, in its sole discretion, to
establish an advertising cooperative ("Cooperative") in any dominant market area
("DMA"). In addition, a Cooperative for the DMA in which the Franchised Unit is
located may be established upon the favorable vote of the owners of all Churchs
restaurants (including non-franchised restaurants) within the same DMA. Each
owner will be entitled to cast one (1) vote for each restaurant owned and
operated by that owner within such DMA. If 80% of all votes entitled to be cast
vote in favor of establishing a Cooperative, then such Cooperative shall be
formed.

             A.   Once a Cooperative is established in the DMA in which the
                  Franchised Unit is located, Franchisee shall become a member
                  of such Cooperative upon commencement of operation of the
                  Franchised Unit if the Cooperative is in existence at that
                  time, or no later than thirty (30) days after the date on
                  which the Cooperative commences operation. In no event shall
                  Franchisee be required to be a member of more than one
                  Cooperative with respect to the Franchised Unit.

             B.   If a Cooperative has been established, Franchisee shall
                  contribute an amount, to be determined by the Cooperative,
                  which when added to the amount required by Franchisor to be
                  contributed to the Advertising Fund, shall not be less than
                  four percent (4%) of its weekly Gross Sales.

                                      15
<PAGE>

             C.   Each Cooperative shall be organized and governed in a form and
                  manner, and shall commence operations on a date, approved in
                  advance by Franchisor in writing.

                  (1)  Each Cooperative shall be organized for the exclusive
                       purpose of administering regional advertising programs
                       and developing, subject to Franchisor's approval,
                       standardized promotional materials for use by its members
                       in local advertising.

                  (2)  No advertising or promotional plans or materials may be
                       used by a Cooperative or furnished to its members without
                       the prior approval of the Franchisor, pursuant to the
                       procedures and terms set forth in Section 10.07 hereof.

                  (3)  Franchisee shall pay its required contribution to the
                       Cooperative weekly on Gross Sales for the preceding week,
                       together with such statements or reports as may be
                       required by Franchisor, or by the Cooperative with the
                       Franchisor's prior written approval.

             D.   Franchisor, in its sole discretion, may grant an exemption to
                  any franchisee for any length of time from the requirement of
                  membership in a Cooperative, and/or from the obligation to
                  contribute thereto (including a reduction, deferral or waiver
                  of such contribution), upon written request of such franchisee
                  stating reasons supporting such exemption. Franchisor's
                  decision concerning such request for exemption shall be final.
                  If an exemption is granted to a franchisee, such franchisee
                  shall be required to expend on local advertising, on a monthly
                  basis, the same amount as would otherwise be assessed by the
                  Cooperative, as set forth in Section 10.05.B hereof.

     10.06.  All local advertising by Franchisee shall be in such media, and of
such type and format as Franchisor may approve; shall be conducted in a
dignified manner; and shall conform to such standards and requirements as
Franchisor may specify. Franchisee shall not use any advertising or promotional
plans or materials unless and until Franchisee has received written approval
from Franchisor, pursuant to the procedures and terms set forth in Section 10.07
hereof.

     10.07.  All advertising and promotional plans proposed to be used by
Franchisee or the Cooperative, where applicable, except such plans and materials
that have been previously approved by Franchisor shall be submitted to
Franchisor for Franchisor's written approval (except with respect to prices to
be charged) prior to any use thereof. Franchisor shall use its best efforts to
complete its review of Franchisee's proposed advertising and promotional plans
within fifteen (15) days after Franchisor receives such plans. If written
approval is not received by Franchisee or the Cooperative from Franchisor within
fifteen (15) days after receipt by Franchisor of such plans, Franchisor shall be
deemed to have disapproved such plans.

     10.08.  Franchisee shall, at Franchisor's request, require all of its
supervisory employees, as a condition of their employment, to execute an
agreement prohibiting them, during the term of their employment or thereafter,
from communicating, divulging, or using for the benefit of any person, persons,
partnership, association, corporation or other entity any confidential
information, trade secrets, knowledge, or know-how concerning the Churchs System
or methods of operation of the Franchised Unit which may be

                                      16
<PAGE>

acquired as a result of their employment with Franchisee or other franchisees. A
duplicate original of each such agreement shall be provided by Franchisee to
Franchisor immediately upon execution.

     10.09.  If Franchisee operates more than one (1) Franchised Unit,
Franchisee shall have a supervisor, which may be Franchisee, to supervise and
coordinate the operation of the Franchised Units (hereinafter, a "Supervisor").
In addition to the foregoing, Franchisee shall employ an additional Supervisor
upon the opening of Franchisee's ninth (9th) Franchised Unit and upon the
opening of each successive eighth (8th) Franchised Unit thereafter. Each
Supervisor shall attend and successfully complete the MIT program set forth in
Section 8.02 hereof prior to assuming any supervisory responsibilities and shall
meet such other standards as Franchisor may reasonably impose. No Supervisor may
have supervisory responsibilities for more than eight (8) Franchised Units.

     10.10.  If at any time the Franchised Unit is proposed to be operated by an
entity or individual other than the Franchisee, Franchisor reserves the right to
review and approve the operating entity or individual and to require and approve
an operating agreement prior to such party's assumption of operations.
Franchisor may, in its sole discretion, reject either the operating entity, the
individual operator or the operating agreement. If approved by Franchisor, the
operating entity and/or individual shall agree in writing to comply with all of
Franchisee's obligations under the Franchise Agreement as though such party were
the franchisee designated therein, on such form as may be designated by
Franchisor. The operation of the Franchised Unit by any party other than
Franchisee, without Franchisor's prior written consent, shall be deemed a
material default of this Agreement for which Franchisee may terminate this
Agreement pursuant to the provisions of Section 15.02 hereof.

     10.11.  Franchisee shall, prior to opening the Franchised Unit, become a
member of the Churchs Operators Purchasing Association (hereinafter "COPA"), or
any successor thereto, shall remain a member in good standing of COPA throughout
the term of this Agreement, and shall pay all reasonable membership fees
assessed by COPA.

     10.12    Franchisee shall, within  thirty (30) days from  receipt of
written notice from Franchisor, purchase and install computer hardware and
software equipment at the Franchised Unit and/or at Franchisee's principal
business office, which computer hardware shall include telecommunications
devices, and which software may be a single program or set of programs, all of
which must be obtained in accordance with the Franchisor's standards and
specifications (the "Required Computer Equipment"). The Required Computer
Equipment shall permit 24 hour per day electronic communications between
Franchisor and Franchisee including access to the internet and Franchisor's
intranet,"AFC On-Line" or any successor thereto. Franchisee shall only be
required to purchase and install the Required Computer Equipment at one, central
location, which shall satisfy the conditions of this section 10.02 (or its
equivalent) for all Franchised Units operated by Franchisee.

     10.13.  Franchisee shall comply with all other requirements set forth in
this Agreement.

XI.          INSURANCE

     11.01.  Insurance Program.  Franchisee shall procure, prior to commencement
of construction of the Franchised Unit, and shall maintain in full force and
effect during the Term of this Agreement at Franchisee's expense, an insurance
policy or policies protecting Franchisee and Franchisor, and their officers,

                                      17
<PAGE>

directors, agents and employees, against any loss, liability, or expense
whatsoever from personal injury, death or property damage or casualty,
including, fire, lightning, theft, vandalism, malicious mischief, and other
perils normally included in an extended coverage endorsement arising from,
occurring upon or in connection with the construction, operation or occupancy of
the Franchised Unit, as Franchisor may reasonably require for its own and
Franchisee's protection.

     11.02.  Insurance Requirements.  Such policy or policies shall be written
by an insurance company satisfactory to Franchisor, and shall include, at a
minimum the following coverage:

             A.   Workers' Compensation Insurance, with statutory limits as
                  -------------------------------
                  required by the laws and regulations applicable to the
                  employees of Franchisee who are engaged in the performance of
                  their duties relating to the Franchised Unit, including any
                  pre-opening training programs, as well as such other insurance
                  as may be required by statute or regulation of the state in
                  which the Franchised Unit is located.

             B.   Employer's Liability Insurance, for employee bodily injuries
                  ------------------------------
                  and deaths, with a limit of $500,000 each accident.

             C.   Comprehensive or Commercial General Liability Insurance,
                  -------------------------------------------------------
                  covering claims for bodily injury, death and property damage,
                  including Premises and Operations, Independent Contractors,
                  Products and Completed Operations, Personal Injury,
                  Contractual, and Broadform Property Damage liability
                  coverages, with limits as follows:

                  Occurrence/Aggregate Limit of $1,000,000 for bodily injury,
                  death and property damage each occurrence and $2,000,000 for
                  general aggregate or Split liability limits of:

                       $1,000,000  for bodily injury per person
                       $1,000,000  for bodily injury per occurrence
                       $  500,000  for property damage

             D.   Comprehensive Automobile Liability Insurance, if applicable,
                  --------------------------------------------
                  covering owned, non-owned and hired vehicles, with limits as
                  follows:

                  Combined Single Limit of $500,000 for bodily injury, death and
                  property damage per occurrence or Split liability limits of:

                       $500,000  for bodily injury per person
                       $500,000  for bodily injury per occurrence
                       $250,000  for property damage

             E.   All Risk Property Insurance, on a replacement cost basis, with
                  ---------------------------
                  limits as appropriate, covering the real property of
                  Franchisee and any real property which the Franchisee may be
                  obligated to insure by contract. Such real property may
                  including building, machinery, equipment, furniture, fixtures
                  and inventory.

                                      18
<PAGE>

     11.03.  All such policies of insurance shall provide that the same shall
not be canceled, modified or changed without first giving thirty (30) days prior
written notice thereof to Franchisor. No such cancellation, modification or
change shall affect Franchisee's obligation to maintain the insurance coverages
required by this Agreement. Except for Workers' Compensation Insurance,
Franchisor shall be named as an Additional Insured on all such required
policies. All liability insurance policies shall be written on an "occurrence"
policy form. Franchisee shall be responsible for payment of any and all
deductibles from insured claims under its policies of insurance. Franchisee
shall not satisfy the requirements of this Article XI unless and until
certificates of such insurance, including renewals thereof, have been delivered
to and approved by Franchisor. Franchisee shall not self-insure any of the
insurance coverages required by this Agreement, or non-subscribe to any State's
applicable workmen's compensation laws without the prior written consent of
Franchisor. Franchisor shall have the right, at any time during the term of this
Agreement to increase the minimum limits of insurance coverage or otherwise
modify the insurance requirements of this Agreement upon written notice in the
Manual or as otherwise prescribed by Franchisor in writing. If Franchisee shall
fail to comply with any of the insurance requirements herein, upon written
notice to Franchisee by Franchisor, Franchisor may, without any obligation to do
so, procure such insurance and Franchisee shall pay Franchisor, upon demand, the
cost thereof plus interest at the maximum rate permitted by law, and a
reasonable administrative fee designated by Franchisor.

     11.04.  Insurance Obtained by Franchisee Shall Be Primary to Franchisors
Own Insurance. Franchisee agrees that all insurance policies obtained by
Franchisee pursuant to Sections 11.01 and 11.02 shall be primary coverage, the
applicable limits of which shall be exhausted before any benefits (defense or
indemnity) may be obtained under any other insurance (including self-insurance)
providing coverage to Franchisor. In the event payments are required to be made
under Franchisor's own insurance policies or self-insurance (whether for defense
or indemnity) before the applicable coverage limits for the insurance policies
obtained by Franchisee are exhausted, then Franchisee hereby agrees to
reimburse, hold harmless and indemnify the Franchisor and its insurers for such
payments. Franchisee shall notify its insurers of this Agreement and shall use
best efforts to obtain an endorsement on each policy it obtains pursuant to
Sections 11.01 and 11.02 stating as follows:

             The applicable limits of this policy shall be applied and exhausted
             before any benefits may be obtained (whether for defense or
             indemnity) under any other insurance (including self-insurance)
             that may provide coverage to Franchisor. All insurance coverage
             obtained by Franchisor shall be considered excess insurance with
             respect to this policy, the benefits of which excess insurance
             shall not be available until the applicable limits of this policy
             are exhausted.

     11.05.  No Limitation on Coverage.  Franchisee's obligation to obtain and
maintain the foregoing policy or policies of insurance in the amounts specified
shall not be limited in any way by reason of any insurance which may be
maintained by Franchisor, nor shall Franchisee's performance of that obligation
relieve it of liability under the indemnity provisions set forth in Section
XVIII of this Agreement.

     11.06.  Issuance of Insurance.  Franchisee must obtain the insurance
required by this Agreement no later than fifteen (15) days before the date on
which any construction is commenced. The Franchised Unit shall not be opened for
business prior to Franchisor's receipt of satisfactory evidence that all
insurance required by this Agreement is in effect. Upon obtaining such
insurance, and on each policy renewal date thereafter, Franchisee shall promptly
submit evidence of satisfactory insurance and proof of payment therefor to
Franchisor, together with, upon request, copies of all policies and policy
amendments. The evidence of

                                      19
<PAGE>

insurance shall include a statement by the insurer that the policy or policies
will not be canceled or materially altered without at least thirty (30) days
prior written notice to Franchisor.

XII.         CONFIDENTIAL INFORMATION

     12.01.  Franchisee shall not, during the term of this Agreement or
thereafter, communicate, divulge, or use for the benefit of any other person,
persons, partnership, association, corporation or other entity, any confidential
information, knowledge or know-how concerning the construction and methods of
operation of the Franchised Business which may be communicated to Franchisee, or
of which Franchisee may be apprised, by virtue of Franchisee's operation under
the terms of this Agreement. Franchisee shall divulge such confidential
information only to such employees of Franchisee as must have access to it in
order to exercise the franchise rights granted hereunder and to establish and
operate the Franchised Unit pursuant hereto and as Franchisee may be required by
law, provided Franchisee shall give Franchisor prior written notice of any such
required disclosure immediately upon receipt of notice by Franchisee in order
for Franchisor to have the opportunity to seek a protective order or take such
other actions as it deems appropriate under the circumstances.

     12.02.  Any and all information, knowledge, and know-how, including,
without limitation, drawings, materials, equipment, recipes, prepared mixtures
or blends of spices or other food products, and other data, which Franchisor
designates as confidential, and any information, knowledge, or know-how which
may be derived by analysis thereof, shall be deemed confidential for purposes of
this Agreement, except information which Franchisee can demonstrate came to
Franchisee's attention prior to disclosure thereof by Franchisor; or which, at
the time of disclosure thereof by Franchisor to Franchisee, had become a part of
the public domain, through publication or communication by others; or which,
after disclosure to Franchisee by Franchisor, becomes a part of the public
domain, through publication or communication by others.

XIII.        COVENANTS

     13.01.  Franchisee covenants that, during the term of the Agreement, except
as otherwise approved in writing by Franchisor, Franchisee or, alternatively,
one designated management employee if that employee assumes primary
responsibility for the operation of the Franchised Unit, shall devote full time,
energy and best efforts to the management and operation of the Franchised
Business.

     13.02.  Franchisee acknowledges that, pursuant to this Agreement,
Franchisee will receive valuable specialized training and confidential
information, including without limitation, information regarding the
operational, sales, promotional, and marketing methods, procedures and
techniques of Franchisor and the System.

     Franchisee covenants that, during the term of this Agreement, Franchisee
(who, unless otherwise specified, shall include, for purposes of this Section
XIII, collectively and individually, all officers, directors and holders of a
beneficial interest of five percent (5%) or more of the securities with voting
rights of Franchisee and of any corporation, directly or indirectly controlling
Franchisee, if Franchisee is a corporation, and the general partner and any
limited partners, including any corporation, and the officers, directors and
holders of a beneficial interest of five percent (5%) or more of securities with
voting rights of a corporation which controls, directly or indirectly, any
general or limited partner, if Franchisee is a

                                      20
<PAGE>

partnership) shall not, either directly or indirectly, for itself or on behalf
of, or in conjunction with, any person, persons, partnership, association or
corporation or other entity:

             A.   Divert or attempt to divert any business or customer of the
                  business franchised hereunder to any competitor by direct or
                  indirect inducements or otherwise, or to do or perform,
                  directly or indirectly, any other act injurious or prejudicial
                  to the goodwill associated with Franchisor's Proprietary Marks
                  and the System;

             B.   Employ or seek to employ any person who is, at that time,
                  employed by Franchisor or by any other Churchs franchisee, or
                  otherwise, directly or indirectly, induce such person to leave
                  his or her employment therewith; or

             C.   Own, maintain, operate, engage in, or have any interest in any
                  fast food (either takeout, on premises consumption, or a
                  combination thereof) restaurant that specializes in the sale
                  of chicken ("Chicken Restaurant"); provided, however, that the
                  term "Chicken Restaurant" shall not apply to any business
                  operated by Franchisee under a franchise agreement with
                  Franchisor or an affiliate of Franchisor.

     13.03.  Franchisee covenants that Franchisee shall not, regardless of the
cause for termination, either directly or indirectly, for itself, or through, on
behalf of, or in conjunction with any person, persons, partnership, association,
corporation or other entity:

             A.   For a period of two (2) years following the termination or
                  expiration of this Agreement, own, maintain, engage in, or
                  have any interest in any Chicken Restaurant which is located
                  within a radius of ten (10) miles of the location specified in
                  Section I hereof, or the location of any other Churchs Chicken
                  restaurant under the System, whether owned by Franchisor or
                  any other Churchs franchisee, which is in existence as of the
                  date of expiration or termination of this Agreement; or

             B.   For a period of one (1) year following the termination or
                  expiration of this Agreement, employ or seek to employ any
                  person who is, at the time, employed by Franchisor or by any
                  other Churchs franchisee, or otherwise, directly or
                  indirectly, induce such person to leave his or her employment
                  therewith.

     13.04.  At Franchisor's request, Franchisee shall require and obtain
execution of covenants similar to those set forth in this Section XIII
(including covenants applicable upon the termination of a person's relationship
with Franchisee) in a form satisfactory to Franchisor, including, without
limitation, specific identification of  Franchisor as a third party beneficiary
of such covenants with the independent right to enforce them, from any or all of
the following persons:

             A.   All managers and assistant managers of the Franchised Unit,
                  and any other personnel employed by Franchisee who have
                  received or will receive training from Franchisor;

                                      21
<PAGE>

          B.   All officers, directors, and holders of a direct or indirect
               beneficial ownership interest of five percent (5%) or more in
               Franchisee.

     The failure of Franchisee to obtain execution of a covenant required by
this Section 13.04 shall constitute a material breach of this Agreement.  A
duplicate original of each such covenant shall be provided by Franchisee to
Franchisor immediately upon execution.

     13.05.    The parties agree that each of the foregoing covenants shall be
construed as independent of any other covenant or provision of this Agreement.
If all or any portion of a covenant in this Section XIII, is held unreasonable
or unenforceable by a court or agency having jurisdiction in a final decision,
Franchisee expressly agrees to be bound by any lesser covenant subsumed within
the terms of such covenant that imposes the maximum duty permitted by law, as if
the resulting covenant was separately stated in and made a part of this Section
XIII.

          A.   Right to Reduce Covenants.  Franchisee understands and
               -------------------------
               acknowledges that Franchisor shall have the right, in its sole
               discretion, to reduce the scope of any covenant set forth in
               Sections 13.02. and 13.03. of this Agreement, or any portion
               thereof, without Franchisee's consent, effective immediately upon
               receipt by Franchisee of written notice thereof, and Franchisee
               agrees that it shall comply with any covenant as so modified,
               which shall be fully enforceable notwithstanding the provisions
               of Section XXII hereof.

          B.   Injunctive Relief.  The parties acknowledge that it will be
               -----------------
               difficult to ascertain with any degree of certainty the amount of
               damages resulting from a breach by Franchisee of any of the
               covenants contained in this Section XIII.  It is further agreed
               and acknowledged that any violation by Franchisee of any of said
               covenants will cause irreparable harm to Franchisor.
               Accordingly, Franchisee agrees that upon proof of the existence
               of a violation of any of said covenants, Franchisor will be
               entitled to injunctive relief against Franchisee in any court of
               competent jurisdiction having authority to grant such relief,
               together with all costs and reasonable attorney's fees incurred
               by Franchisor in bringing such action.

XIV.    TRANSFERABILITY OF INTEREST

     14.01.    Transfer by Franchisor. This Agreement shall inure to the benefit
               ----------------------
of the successors and assigns of Franchisor. Franchisor shall have the right to
transfer or assign its interest in this Agreement to any person, persons,
partnership, association, corporation, or other entity. If Franchisor's assignee
assumes all the obligations of Franchisor hereunder and sends Franchisee written
notice of the assignment so attesting, Franchisee agrees promptly to execute a
general release of Franchisor, and any affiliates of Franchisor, from claims or
liabilities of Franchisor under this Agreement.

     14.02.    Transfer by Franchisee.  Franchisee understands and acknowledges
               ----------------------
that the rights and duties set forth in this Agreement are personal to
Franchisee, and that Franchisor has granted this Agreement in reliance on
Franchisee's business skill and financial capacity.  Accordingly, neither (i)
Franchisee, nor (ii) any immediate or remote successor to Franchisee, nor (iii)
any individual, partnership, corporation or other legal entity which directly or
indirectly owns any interest in the Franchisee or in this Franchise Agreement,

                                       22
<PAGE>

shall sell, assign, transfer, convey, donate, pledge, mortgage, or otherwise
encumber any direct or indirect interest in this Agreement or in any legal
entity which owns the Franchised Business without the prior written consent of
Franchisor.  Acceptance by Franchisor of any royalty fee, advertising fee or any
other amount accruing hereunder from any third party, including, but not limited
to any proposed transferee, shall not constitute Franchisor's approval of such
party as a transferee or the transfer of this Franchise Agreement to such party.
Any purported assignment or transfer, by operation of law or otherwise, not
having the written consent of Franchisor, shall be null and void, and shall
constitute a material breach of this Agreement, for which Franchisor may then
terminate without opportunity to cure pursuant to Section 15.02.E. of this
Agreement.

     14.03.    Conditions for Consent. Franchisor shall not unreasonably
               ----------------------
withhold its consent to any transfer referred to in Section 14.02., when
requested; provided, however, that prior to the time of transfer;

               A.   All of Franchisee's accrued monetary obligations to
                    Franchisor and its subsidiaries and affiliates shall have
                    been satisfied;

               B.   Franchisee shall have agreed to remain obligated under the
                    covenants contained in Section XIII hereof as if this
                    Agreement had been terminated on the date of the transfer;

               C.   The transferee must be of good moral character and
                    reputation, in the reasonable judgment of the Franchisor;

               D.   The Franchisor shall have determined, to its satisfaction,
                    that the transferee's qualifications meet the Franchisor's
                    then current criteria for new franchisees;

               E.   Franchisee and transferee shall execute a written
                    assignment, in a form satisfactory to Franchisor, pursuant
                    to which the transferee shall assume all of the obligations
                    of Franchisee under this Agreement and Franchisee shall
                    unconditionally release any and all claims Franchisee might
                    have against Franchisor as of the date of the assignment;

               F.   The transferee shall execute the then-current form of
                    Franchise Agreement and such other then-current ancillary
                    agreements as Franchisor may reasonably require. The then-
                    current form of Franchise Agreement may have significantly
                    different provisions including, without limitation, a higher
                    royalty fee and advertising contribution than that contained
                    in this Agreement. The then-current form of Franchise
                    Agreement will expire on the expiration date of this
                    Agreement and will contain the same renewal rights, if any,
                    as are available to Franchisee herein;

               G.   The transferee shall agree at its sole cost and expense, to
                    (i) complete a Franchised Unit Renovation, within the time
                    frame required by Franchisor, unless a Franchised Unit
                    Renovation was completed within seven (7) years prior to the
                    date of the transfer and (ii) perform such other scope of
                    work as may be determined by Franchisor.

                                       23
<PAGE>

               H.   The transferee and such other individuals as may be
                    designated by Franchisor in the Manual or otherwise in
                    writing, must have successfully completed the training
                    course then in effect for new franchisees. If the Franchised
                    Unit is the transferee's first Churchs restaurant, the
                    transferee shall pay to Franchisor the then-standard
                    Training Fee;

               I.   If the transferee is a partnership, the partnership
                    agreement shall provide that further assignments or
                    transfers of any interest in the partnership are subject to
                    all restrictions imposed upon assignments and transfers in
                    this Agreement;

               J.   Franchisee shall, at Franchisor's option and request,
                    execute a written guarantee of the transferee's obligations
                    under the Agreement, which guarantee shall not exceed a
                    period of three (3) years from the date of transfer.

               K.   The Franchisee shall pay to Franchisor a transfer fee of
                    Five Thousand Dollars ($5,000), to cover Franchisor's
                    administrative expenses in connection with the transfer;
                    however no additional franchise fee shall be charged by
                    Franchisor for a transfer. If the transferee is (i) a
                    corporation formed by Franchisee for the convenience of
                    ownership and in which the Franchisee is the sole
                    shareholder, or (ii) an existing Franchisee under this
                    Agreement, no transfer fee shall be required.

     14.04.    Grant of Security Interest.  Franchisee shall grant no security
               --------------------------
interest in this Agreement, the Franchised Business, or in any of its assets
unless the secured party agrees that, in the event of any default by Franchisee
under any documents related to the security interest (i) Franchisor shall be
provided with notice of default and given a reasonable time within which to cure
said default, (ii) Franchisor shall have the right and option to be substituted
as obligor to the secured party and to cure any default of Franchisee or to
purchase the rights of the secured party upon payment of all sums then due to
such secured party, except such amounts which may have become due as a result of
any acceleration of the payment dates based upon the Franchisee's default, and
(iii) the secured party shall agree to such other requirements as Franchisor, in
its sole discretion, deems reasonable and necessary to protect the integrity of
the Proprietary Marks and the Churchs System.

     14.05.    Transfer on Death or Mental Incapacity.  Upon the death or mental
               --------------------------------------
incapacity of any person with an interest in this Agreement, the Franchised
Business or Franchisee, the executor, administrator, or personal representative
of such person shall transfer his interest to a third party approved by
Franchisor within 12 months after such death or mental incapacity.  Such
transfer, including, without limitation, transfer by devise or inheritance,
shall be subject to the same conditions as any inter vivos transfer.  However,
                                               ----- -----
in the case of transfer by devise or inheritance, if the heirs or beneficiaries
of any such person are unable to meet the conditions in this Section XIV, the
personal representative of the deceased Franchisee shall have a reasonable time,
but in no event more than eighteen (18) months from Franchisee's death, to
dispose of the deceased's interest in this Agreement and the business conducted
pursuant hereto, which disposition shall be subject to all the terms and
conditions for assignments and transfers contained in this Agreement.  If the
interest is not disposed of within twelve (12) or eighteen (18) months,
whichever is applicable, Franchisor may terminate this Agreement.

     14.06.    Right of First Refusal.  Any party holding an interest in this
               ----------------------
Agreement, the Franchised Business or in Franchisee, and who desires to accept a
bona fide offer from a third party to purchase such
---- ----

                                       24
<PAGE>

interest, shall notify Franchisor in writing of such offer within ten (10) days
of receipt of such offer, and shall provide such information and documentation
relating to the offer as Franchisor may require. Franchisor shall have the right
and option, exercisable within thirty (30) days after receipt of such written
notification, to send written notice to the seller that Franchisor intends to
purchase the seller's interest on the same terms and conditions offered by the
third party. In the event that Franchisor elects to purchase the seller's
interest, closing on such purchase must occur within sixty (60) days from the
date of notice to the seller of the election to purchase by Franchisor. Any
material change in the terms of any offer prior to closing shall constitute a
new offer subject to the same rights of first refusal by Franchisor as in the
case of an initial offer. Failure of Franchisor to exercise the option afforded
by this Section 14.06. shall not constitute a waiver of any other provisions of
this Agreement, including all of the requirements of this Section XIV, with
respect to a proposed transfer.

     In the event the consideration, terms, and/or conditions offered by a third
party are such that Franchisor may not reasonably be required to furnish the
same consideration, terms, and/or conditions, then Franchisor may purchase the
interest in this Agreement, Franchisee, or the Franchised Business proposed to
be sold for the reasonable equivalent in cash.  If the parties cannot agree
within a reasonable time as to the reasonable equivalent in cash of the
consideration, terms, and/or conditions offered by the third party, an
independent appraiser shall be designated by Franchisor, and his determination
shall be binding upon the parties.

     14.07.    Offerings by Franchisee.  Securities or partnership interests in
               -----------------------
Franchisee may be offered to the public, by private offering or otherwise, only
with the prior written consent of Franchisor, which consent shall not be
unreasonably withheld.  All materials required for such offering by federal or
state law shall be submitted to Franchisor for review prior to their being filed
with any governmental agency; and any materials to be used in any exempt
offering shall be submitted to Franchisor for review prior to their use.  No
offering of such securities shall imply (by use of the Proprietary Marks or
otherwise) that Franchisor is participating in the underwriting, issuance, or
offering of securities by Franchisee; and Franchisor's review of any offering
shall be limited solely to the subject of the relationship between Franchisee
and Franchisor.  Franchisee and the other participants in the offering shall
fully indemnify Franchisor in connection with the offering.  For each proposed
offering, Franchisee shall pay to Franchisor a non-refundable fee of Five
Thousand Dollars ($5,000), or such greater amount as is necessary to reimburse
Franchisor for its reasonable costs and expenses associated with reviewing the
proposed offering, including, without limitation, legal and accounting fees.
Franchisee shall give Franchisor written notice at least sixty (60) days prior
to the date of commencement any offering or other transaction covered by this
Section 14.07.

XV.    TERMINATION

     15.01.    Franchisee shall be deemed to be in default under this Agreement,
and all rights granted herein shall automatically terminate without notice to
Franchisee, if Franchisee shall become insolvent or make a general assignment
for the benefit of creditors; if a petition in bankruptcy is filed by Franchisee
or such a petition is filed against Franchisee and not opposed by Franchisee; or
if Franchisee is adjudicated bankrupt or insolvent; or if a receiver or other
custodian (permanent or temporary) of Franchisee's assets or property, or any
part thereof, is appointed by any court of competent jurisdiction; or if
proceedings for a composition with creditors under the applicable law of any
jurisdiction should be instituted by Franchisee or against Franchisee and not
opposed by Franchisee; or if a final judgment remains unsatisfied or of record
for thirty (30) days or longer (unless a supersedeas bond is filed); or if
Franchisee is dissolved; or if

                                       25
<PAGE>

execution is levied against Franchisee's property or business; or if suit to
foreclose any lien or mortgage against the premises or equipment of any
Franchised Unit developed hereunder is instituted against the Franchisee and not
dismissed within thirty (30) days; or if the real or personal property of any
Restaurant developed hereunder shall be sold after levy thereon by any sheriff,
marshal, or constable.

     15.02.    Franchisee shall be deemed to be in default and Franchisor may,
at its option, terminate this Agreement and all rights granted hereunder without
affording Franchisee any opportunity to cure the default upon the occurrence of
any of the following events:

               A.   If Franchisee fails to complete construction of the
                    Franchised Unit and opens for business within one hundred
                    eighty (180) days of execution of this Agreement. Franchisor
                    may, in its sole discretion, extend this period to address
                    unforeseen construction delays, not within the control of
                    Franchisee.

               B.   If Franchisee at any time ceases to operate the Franchised
                    Unit or otherwise abandons the Franchised Unit, or loses the
                    right to possession of the premises of the Franchised Unit,
                    or otherwise forfeits the right to do or transact business
                    in the jurisdiction where the Franchised Unit is located;
                    provided, however, that if, through no fault of Franchisee,
                    the premises are damaged or destroyed by an event not within
                    the control of Franchisee such that repairs or
                    reconstruction cannot be completed within one hundred eighty
                    (180) days thereafter, then Franchisee shall have thirty
                    (30) days after such event in which to apply for
                    Franchisor's approval to relocate and/or reconstruct the
                    premises, which approval shall not be unreasonably withheld,
                    but may be conditioned upon the payment of an agreed minimum
                    royalty to Franchisor during the period in which the
                    Franchised Unit is not in operation;

               C.   If Franchisee is convicted of or pleads guilty to a felony,
                    a crime involving moral turpitude, or any other crime or
                    offense that Franchisor believes is reasonably likely to
                    have an adverse effect on the System, the Proprietary Marks,
                    the goodwill associated therewith, or Franchisor's interest
                    therein;

               D.   If a threat or danger to public health or safety results
                    from the construction, maintenance, or operation of the
                    Franchised Unit;

               E.   If Franchisee, or any partner or shareholder of Franchisee
                    purports to transfer any rights or obligations under this
                    Agreement or any interest in Franchisee to any third party
                    without Franchisor's prior written consent, contrary to the
                    terms of Section XIV hereof;

               F.   If Franchisee fails to comply with the in-term covenants in
                    Section 13.02. hereof or fails to obtain execution of the
                    covenants required under Sections 10.08. or 13.04.. hereof;

               G.   If, contrary to the terms of Section VII hereof, Franchisee
                    discloses or divulges the contents of the Manual or any
                    other confidential information provided to Franchisee by
                    Franchisor;

                                       26
<PAGE>

               H.   If an approved transfer is not effected as required by
                    Section 14.05 hereof, following Franchisee's death or mental
                    incapacity;

               I.   If Franchisee knowingly maintains false books or records, or
                    submits any false reports to Franchisor;

               J.   If Franchisee or any individual, group, association, limited
                    or general partnership, corporation or other business entity
                    which directly or indirectly controls, is controlled by, or
                    is under common control with Franchisee; or which directly
                    or indirectly owns, controls, or holds power to vote ten
                    percent (10%) or more of the outstanding voting securities
                    of Franchisee; or which has in common with Franchisee one or
                    more partners, officers, directors, trustees, branch
                    managers, or other persons occupying similar status or
                    performing similar functions ("Affiliate") commits any act
                    of default under any other Franchise Agreement, Development
                    Agreement (except for failure to meet the development
                    schedule thereunder), asset purchase agreement, promissory
                    note or any other agreement entered into by Franchisee or an
                    Affiliate of Franchisee, and Franchisor, or any parent,
                    subsidiary, affiliate, predecessor or successor to
                    Franchisor;

               K.   If Franchisee, after or during a default pursuant to Section
                    15.03. hereof, commits the same default again, whether or
                    not such default is cured after notice; or

               L.   If Franchisee defaults more than once in any twelve (12)
                    month period under Section 15.03. hereof for failure to
                    substantially comply with any of the requirements imposed by
                    this Agreement, whether or not cured after notice.

               M.   If Franchisee refuses to permit Franchisor or its agents to
                    enter upon the premises of the Franchised Unit to conduct
                    any periodic inspection as set forth in Sections 5.09. and
                    10.02.H hereof.

               N.   If Franchisee uses any of Franchisor's Proprietary Marks in
                    any unauthorized manner or is otherwise in default of the
                    provisions of Section V hereof.

     15.03.    Except as provided in Sections 15.01 and 15.02 of this Agreement,
upon any default by Franchisee which is susceptible of being cured, Franchisor
may terminate this Agreement only by giving written Notice of Termination
stating the nature of such default to Franchisee at least ten (10) days prior to
the effective date of termination if the default is for failure to pay
royalties, Advertising Fund contributions (including Cooperative contributions,
if any are due and/or any other financial obligations owed to Franchisor by
Franchisee), and thirty (30) days, prior to the effective date of termination
for any other default, provided, however, that Franchisee may avoid termination
by curing such default to Franchisor's satisfaction within the ten (10) day or
thirty (30) day period, as applicable.  If any such default is not cured within
the specified time, this Agreement shall terminate without further notice to
Franchisee effective immediately upon the expiration of the ten (10) day or
thirty (30) day period, as applicable, or such longer period as applicable law
may require.  Notwithstanding anything to the contrary set forth in this
Agreement, Franchisee hereby acknowledges that any agreement between Franchisee
and Franchisor relating to past due amounts accruing hereunder, (an "Arrearage
Agreement"), including, but  not limited to any promissory note,

                                       27
<PAGE>

payment plan or amendment to this agreement shall be deemed to be a material
part of this agreement and shall be incorporated herein by reference. A default
under any Arrearage Agreement shall be deemed a material default of this
Franchise Agreement, regardless of the reason Franchisee fails to pay the amount
which is the subject of such Arrearage Agreement.

     15.04.    Franchisee shall indemnify and hold Franchisor harmless for all
costs, expenses and any losses incurred by Franchisor in enforcing the
provisions hereof, or in upholding the propriety of any action or determination
by Franchisor pursuant to this Agreement, or in defending any claims made by
Franchisee against Franchisor, or arising in any manner from Franchisee's breach
of or failure to perform any covenant or obligation hereunder, including,
without limitation, reasonable litigation expenses and attorney's fees incurred
by Franchisor in connection with any threatened or pending litigation relating
to any part of this Agreement, unless Franchisee shall be found, after due legal
proceedings, to have complied with all of the terms, provisions, conditions and
covenants hereof.

XVI.    EFFECT OF TERMINATION OR EXPIRATION

     16.01.    Upon termination or expiration of this Agreement, all rights
granted herein shall forthwith terminate, and:

               A.   Franchisee shall immediately cease to operate the Franchised
                    Unit as a Churchs restaurant, and shall not thereafter,
                    directly or indirectly, represent to the public that the
                    restaurant is a Churchs restaurant;

               B.   Franchisee shall immediately and permanently cease to use,
                    by advertising or in any manner whatsoever, any menus,
                    recipes, confidential food for formulae, equipment, methods,
                    procedures, and the techniques associated with the System,
                    Franchisor's Proprietary Marks, and Franchisor's other trade
                    names, trademarks and service marks associated with the
                    Churchs System. In particular, and without limitation,
                    Franchisee shall cease to use all signs, furniture,
                    fixtures, equipment, advertising materials, stationery,
                    forms, packaging, containers and any other articles which
                    display the Proprietary Marks;

               C.   Franchisee agrees, in the event Franchisee continues to
                    operate or subsequently begins to operate restaurants or
                    other businesses, not to use any reproduction, counterfeit,
                    copy, or colorable imitation of the Proprietary Marks in
                    conjunction with such other business which is likely to
                    cause confusion or mistake or to deceive, and further agrees
                    not to utilize any trade dress, designation of origin,
                    description, or representation which falsely suggests or
                    represents an association or connection with Franchisor;

               D.   Franchisee agrees, upon termination or expiration of this
                    Agreement or upon cessation of the Franchised Business at
                    the location specified in Section I hereof for any reason,
                    whether or not Franchisee continues to operate any business
                    at such location, and whether or not Franchisee owns or
                    leases the location, to make such modifications or
                    alterations to the Franchised Unit premises immediately upon
                    termination or expiration of this Agreement or cessation of
                    operation of the

                                       28
<PAGE>

                    Franchised Business as may be necessary to prevent the
                    operation of any businesses thereon by Franchisee or others
                    in derogation of this Section XVI, and shall make such
                    specified additional changes thereto as Franchisor may
                    reasonably request for that purpose. The modifications and
                    alterations required by this Section XVI shall include, but
                    are not limited to, removal of all trade dress, proprietary
                    marks and other indicia of the Churchs System;

               E.   Franchisee shall immediately pay all sums owing to
                    Franchisor and its subsidiaries and affiliates. In the event
                    of termination for any default by Franchisee, such sums
                    shall include all damages, costs and expenses, including
                    reasonable attorneys' fees, incurred by Franchisor as a
                    result of the default; and

               F.   Franchisee shall immediately turn over to Franchisor the
                    Manual, all other manuals, records, files, instructions,
                    correspondence and any and all other materials relating to
                    the operation of the Franchised Business in Franchisee's
                    possession and all copies thereof (all of which are
                    acknowledged to be Franchisor's property) and shall retain
                    no copy or record of any of the foregoing, with the
                    exception of Franchisee's copy of this Agreement, any
                    correspondence between the parties, and any other documents
                    which Franchisee reasonably needs for compliance with any
                    provision of law.

     16.02.    Franchisor shall have The right (but not the duty) to be
exercised by notice of intent to do so within thirty (30) days after termination
or expiration of this Agreement, to purchase any and all improvements,
equipment, advertising and promotional materials, ingredients, products,
materials, supplies, paper goods and any items bearing Franchisor's Proprietary
Marks at current fair market value. If the parties cannot agree on a fair market
value within a reasonable time, an independent appraiser shall be designated by
Franchisor, and his determination of fair market value shall be binding. If
Franchisor elects to exercise any option to purchase herein provided, it shall
have the right to set-off all amounts due from Franchisee under this Agreement
and the cost of the appraisal, if any, against any payment therefor.

     16.03.    In the event the premises are leased to Franchisee, Franchisee
shall, upon termination of this Agreement and upon request by Franchisor,
immediately assign, set over and transfer unto Franchisor, at Franchisor's sole
option and discretion, said lease and the premises, including improvements.  Any
such lease entered into by Franchisee shall contain a clause specifying the
landlord's consent to assign such lease to Franchisor or its assignee in the
event this Agreement is terminated.

     16.04.    Franchisee shall pay to Franchisor all damages, costs, and
expenses, including reasonable attorneys' fees, incurred by Franchisor in
seeking recovery of damages caused by any action of Franchisee in violation of,
or in obtaining injunctive relief for the enforcement of, any portion of this
Section XVI.  Further, Franchisee acknowledges and agrees that any failure to
comply with the provisions of this Section XVI, shall result in irreparable
injury to Franchisor.

     16.05.    All provisions of this Agreement which, by their terms or intent,
are designed to survive the expiration or termination of this Agreement, shall
so survive the expiration and/or termination of this Agreement.

     16.06.    Franchisee shall comply with the covenants contained in Section
XIII of this Agreement.

                                       29
<PAGE>

     16.07.    Franchisee shall execute such documents as Franchisor may
reasonably require to effectuate termination of the franchise and Franchisee's
rights to use the trademarks and systems of Franchisor.

XVII.    TAXES, PERMITS, AND INDEBTEDNESS

     17.01.    Franchisee shall promptly pay when due all taxes, accounts and
other indebtedness of every kind incurred by Franchisee in the conduct of the
Franchised Business under this Agreement.

     17.02.    Franchisee, in the conduct of the Franchised Business, shall
comply with all applicable laws and regulations, and shall timely obtain any and
all permits, certificates, or licenses necessary for the full and proper conduct
of the businesses operated under this Agreement, including, without limitation,
licenses to do business, trade name registrations, sales tax permits and fire
clearances.

XVIII.  INDEPENDENT CONTRACTOR AND INDEMNIFICATION

     18.01.    This Agreement does not constitute Franchisee an agent, legal
representative, joint venturer, partner, employee or servant of Franchisor for
any purpose whatsoever.  It is understood and agreed that Franchisee shall be an
independent contractor and is in no way authorized to make any contract,
agreement, warranty, or representation on behalf of Franchisor.  The parties
further agree that this Agreement does not create any fiduciary relationship
between them.

     18.02.    During the term of this Agreement and any extensions hereof,
Franchisee agrees to take such action as Franchisor deems reasonably necessary
for Franchisee to inform and hold itself out to the public as an independent
contractor operating the Franchised Business pursuant to a franchise from
Franchisor, including, without limitation, exhibiting a notice of that fact at
the Franchised Business in form and substance satisfactory to Franchisor.

     18.03     Franchisee agrees to defend, indemnify and hold harmless
Franchisor, its parent, subsidiaries and affiliates, and their respective
officers, directors, employees, agents, successors and assigns from all claims,
demands, losses, damages, liabilities, cost and expenses (including attorney's
fees and expense of litigation) resulting from, or alleged to have resulted
from, or in connection with Franchisee's operation of the Franchised Business,
including, but not limited to, any claim or actions based on or arising out of
any injuries, including death to persons or damages to or destruction of
property, sustained or alleged to have been sustained in connection with or to
have arisen out of or incidental to the Franchised Business and/or the
performance of this contract by Franchisee, its agents, employees, and/or its
subcontractors, their agents and employees, or anyone for whose acts they may be
liable, regardless of whether or not such claim, demand, damage, loss,
liability, cost or expense is caused in whole or in part by the negligence of
Franchisor, Franchisor's representative, or the employees, agents, invitees, or
licensees thereof.

     18.04     Franchisor shall advise Franchisee in the event Franchisor
receives notice that a claim has been or may be filed with respect to a matter
covered by this Agreement, and Franchisee shall immediately assume the defense
thereof at Franchisee's sole cost and expense. In any event, Franchisor will
have the right, through counsel of its choice, to control any matter to the
extent it could directly or indirectly affect Franchisor and/or its parent,
subsidiaries or affiliates or their officers, directors, employees, agents,

                                       30
<PAGE>

successors or assigns. If Franchisee fails to assume such defense, Franchisor
may defend, settle, and litigate such action in the manner it deems appropriate
and Franchisee shall, immediately upon demand, pay to Franchisor all costs
(including attorney's fees and cost of litigation) incurred by Franchisor in
affecting such defense, in addition to any sum which Franchisor may pay by
reason of any settlement or judgment against Franchisor.

     18.05     Franchisor's right to indemnity hereunder shall exist
notwithstanding that joint or several liability may be imposed upon Franchisor
by statute, ordinance, regulation or judicial decision.

     18.06     Franchisee agrees to pay Franchisor all expenses including
attorney's fees and court  costs, incurred by Franchisor, its parent,
subsidiaries, affiliates, and their successors and assigns to remedy any
defaults of or enforce any rights under this Agreement, effect termination of
this Agreement or collect any amounts due under this Agreement.

XIX.     APPROVALS AND WAIVERS

     19.01.    Whenever this Agreement requires the prior approval of
Franchisor, Franchisee shall make a timely written request to Franchisor
therefor, and such approval or consent shall be in writing.

     19.02.    Franchisor makes no warranties or guarantees upon which
Franchisee may rely, and assumes no liability or obligation to Franchisee or any
third party to which Franchisor would not otherwise be subject, by providing any
waiver, approval, advice, consent, or suggestions to Franchisee in connection
with this Agreement, or by reason of any neglect, delay, or denial of any
request therefor.

     19.03.    No failure of Franchisor to exercise any power reserved to it in
this Agreement, or to insist upon compliance by Franchisee with any obligation
or condition in this Agreement, and no custom or practice of the parties at
variance with the terms hereof, shall constitute a waiver of Franchisor's right
to demand exact compliance with the terms of this Agreement.  Waiver by
Franchisor of any particular default shall not affect or impair Franchisor's
right in respect to any subsequent default of the same or of a different nature,
nor shall any delay, forbearance, or omission of Franchisor to exercise any
power or rights arising out of any breach or default by Franchisee of any of the
terms, provisions, or covenants of this Agreement, affect or impair Franchisor's
rights, nor shall such constitute a waiver by Franchisor of any rights,
hereunder or right to declare any subsequent breach or default.  Subsequent
acceptance by Franchisor of any payments due to it shall not be deemed to be a
waiver by Franchisor of any preceding breach by Franchisee of any terms,
covenants, or conditions of this Agreement.

XX.    NOTICES

     Any and all notices required or permitted under this Agreement shall be in
writing and shall be personally delivered , sent by registered mail, or by other
means which will provide evidence of the date received to the respective parties
at the following addresses unless and until a different address has been
designated by written notice to the other party:

                                       31
<PAGE>

Notices to Franchisor:    Franchise Department
                          AFC ENTERPRISES, INC.
                          Six Concourse Pkwy., Suite 1700
                          Atlanta, Georgia 30328-5352
                          cc:  Legal Department

Notices to Franchisee:    ____________________________
                          ____________________________
                          ____________________________
                          [ATTN:]  ____________________

     All written notices and reports permitted or required to be delivered by
the provisions of this Agreement shall be addressed to the party to be notified
at its most current principal business address of which the notifying party has
been notified and shall be deemed so delivered (i) at the time delivered by
hand; (ii) one (1) business day after sending by telegraph, facsimile or
comparable electronic system; or (iii) if sent by registered or certified mail
or by other means which affords the sender evidence of delivery, on the date and
time of receipt or attempted delivery if delivery has been refused or rendered
impossible by the party being notified.

XXI.           SEVERABILITY AND CONSTRUCTION

     21.01.    Except as expressly provided to the contrary herein, each
section, paragraph, part, term, and/or provision of this Agreement shall be
considered severable; and if, for any reason, any section, part, term, and/or
provision herein is determined to be invalid and contrary to, or in conflict
with, any existing or future law or regulation by a court or agency having valid
jurisdiction, such shall not impair the operation, or have any other effect
upon, such other portions, sections, parts, terms, and/or provisions of this
Agreement as may remain otherwise intelligible, and the latter shall continue to
be given full force and effect to bind the parties hereto; and said invalid
portions, sections, parts, terms, and/or provisions shall be deemed not to be
part of this Agreement.

     21.02.    Except as has been expressly provided to the contrary herein,
nothing in this Agreement is intended, nor shall be deemed, to confer upon any
person or legal entity other than Franchisee, Franchisor, Franchisor's officer,
directors, and employees, and Franchisee's permitted and Franchisor's respective
successors and assigns, any rights or remedies under or by reason of this
Agreement.

     21.03.    All captions in the Agreement are intended solely for the
convenience of the parties, and none shall be deemed to affect the meaning or
construction of any provision hereof.

     21.04.    All references herein to the masculine, neuter or singular shall
be construed to include the masculine, feminine, neuter or plural, where
applicable, and all acknowledgements, promises, covenants, agreements and
obligations herein made or undertaken by Franchisee shall be deemed jointly and
severally undertaken by all the parties hereto on behalf of Franchisee.

     21.05.    This Agreement may be executed in counterparts, and each copy so
executed shall be deemed an original.

                                       32
<PAGE>

XXII.          ENTIRE AGREEMENT: SURVIVAL

     22.01.    This Agreement, the documents referred to herein, the Development
Agreement, if any, and the exhibits hereto, constitute the entire, full and
complete agreement between Franchisor and Franchisee concerning the subject
matter hereof and supersede any and all prior agreements.  Except for those
permitted to be made unilaterally by Franchisor hereunder, no amendment, change,
modification or variance of this Agreement shall be binding on either party
unless in writing and executed by Franchisor and Franchisee.  Representations by
either party, whether oral, in writing, electronic or otherwise, that are not
set forth in this Agreement shall not be binding upon the party alleged to have
made such representations and shall be of no force or effect.

                    I have read this Section 22.01 and agree that I
                    have not been induced by and am not relying upon
                    any representation not contained in this
                    Agreement.

                    _________________________________, Franchisee

     22.02.    Notwithstanding anything herein to the contrary, upon the
termination of this Agreement for any reason whatsoever (including the execution
of a subsequent Franchise Agreement pursuant to the provisions of Sections
2.02.B and 14.03.F), or upon the expiration of the Term hereof, any provisions
of this Agreement which, by their nature, extend beyond the expiration or
termination of this Agreement, shall survive termination or expiration and be
fully binding and enforceable as though such termination or expiration had not
occurred.

XXIII.         ACKNOWLEDGMENTS

     23.01.    Franchisee acknowledges that Franchisee has conducted an
independent investigation of the Churchs franchise and recognized that the
business venture contemplated by this Agreement involves business risks and
Franchisee's success will be largely dependent upon the ability of the
Franchisee as an independent business entity.

     FRANCHISOR EXPRESSLY DISCLAIMS THE MAKING OF, AND FRANCHISEE ______
ACKNOWLEDGES THAT FRANCHISEE HAS NOT RECEIVED, ANY WARRANTY OR Franchisee
GUARANTY, EXPRESSED OR IMPLIED, AS TO THE POTENTIAL VOLUME, PROFITS OR must
initial SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT.

     23.02.    FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS RECEIVED A COMPLETED
COPY OF THIS AGREEMENT, THE EXHIBITS HERETO, IF ANY, AND THE AGREEMENTS RELATING
THERETO, IF ANY, AT LEAST FIVE (5) BUSINESS DAYS PRIOR TO THE DATE ON WHICH THIS
AGREEMENT WAS EXECUTED. FRANCHISEE

                                       33
<PAGE>

_____  FURTHER ACKNOWLEDGES THAT FRANCHISEE HAS RECEIVED THE DISCLOSURE
Franchisee  DOCUMENT REQUIRED BY THE TRADE REGULATION RULE OF THE FEDERAL TRADE
must initial  COMMISSION ENTITLED "DISCLOSURE REQUIREMENTS AND PROHIBITIONS
     CONCERNING FRANCHISING AND BUSINESS OPPORTUNITY VENTURES" AT LEAST TEN (10)
     BUSINESS DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED.

     23.03.    FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS READ AND
     UNDERSTOOD THIS AGREEMENT, THE EXHIBITS HERETO, IF ANY, AND AGREEMENTS
     RELATING THERETO, IF ANY, AND THAT FRANCHISOR HAS
_____  ACCORDED FRANCHISEE AMPLE TIME AND OPPORTUNITY AND HAS ENCOURAGED
Franchisee  FRANCHISEE TO CONSULT WITH ADVISORS OF FRANCHISEE'S OWN CHOOSING
must initial  ABOUT THE POTENTIAL BENEFITS AND RISKS OF ENTERING INTO THIS
     AGREEMENT.

     23.04.    FRANCHISEE RECOGNIZES AND UNDERSTANDS THAT IT MAY INCUR
     OTHER EXPENSES AND/OR OBLIGATIONS AS PART OF THE INITIAL INVESTMENT IN THE
     FRANCHISED BUSINESS WHICH THE TERMS OF THIS AGREEMENT MAY NOT
_____  ADDRESS, AND WHICH INCLUDE WITHOUT LIMITATION: OPENING ADVERTISING,
Franchisee  EQUIPMENT, FIXTURES, OTHER FIXED ASSETS, CONSTRUCTION, LEASEHOLD
must initial  IMPROVEMENTS AND DECORATING COSTS AS WELL AS WORKING CAPITAL
     NECESSARY TO COMMENCE OPERATIONS.

XXIV.          APPLICABLE LAW:  VENUE

     24.01.    Applicable Law.  This Agreement takes effect upon its acceptance
and execution by Franchisor and shall be interpreted and construed under the
laws of the State of Georgia which laws shall prevail in the event of any
conflict of law (without regard to, and without giving effect to, the
application of Georgia choice of law or conflict of law rules) except to the
extent governed by the U. S. Trademark Act of 1946, 15 U.S.C.   1051, et seq.
                                                                      -- ---
(the " Lanham Act") as amended; provided, however, that if the covenants in
Article XIII of this Agreement would not be enforceable under the laws of
Georgia, and the Franchised Unit is located outside of Georgia, then such
covenants shall be interpreted and construed under the laws of the state in
which the Franchised Unit is located.  Nothing in this Section XXV is intended
by the parties to subject this Agreement to any franchise or similar law, rule,
or regulation of the State of Georgia to which this Agreement would not
otherwise be subject.

     24.02.    The parties agree that any action brought by Franchisee against
Franchisor in any court, whether federal or state, shall be brought within such
state and in the judicial district in which Franchisor has its principal place
of business.  Any action brought by Franchisor against Franchisee in any court,
whether federal or state, may be brought within the state and in the judicial
district in which Franchisor has its principal place of business. Franchisee
hereby consents to personal jurisdiction and venue in the state and judicial
district in which Franchisor has its principal place of business.

     24.03.    No right or remedy herein conferred upon or reserved to
Franchisor is exclusive of any other right or remedy herein, or by law or equity
provided or permitted; but each shall be cumulative of any other right or remedy
provided in this Agreement

                                       34
<PAGE>

     24.04.    Nothing herein contained shall bar Franchisor's right to obtain
injunctive relief against threatened conduct that will cause it loss or damages,
under the usual equity rules, including the applicable rules for obtaining
restraining orders and preliminary injunctions.

     24.05.    Any and all claims and actions arising out of or relating to this
Agreement (including, but not limited to, the offer and sale of this franchise),
the relationship of Franchisee and Franchisor, or Franchisee's operation of the
Franchised Unit, brought by Franchisee shall be commenced within eighteen (18)
months from the occurrence of the facts giving rise to such claim or action, or
such claim or action shall be barred.

     24.06.    Franchisor and Franchisee hereby waive to the fullest extent
permitted by law any right to or claim of any consequential, punitive, or
exemplary damages against the other, and agree that in the event of a dispute
between them each shall be limited to the recovery of any actual damages
sustained by it.

XXV.           CORPORATE FRANCHISEE

     In the event the Franchisee named herein is a corporation at the time of
execution of this Agreement, it is warranted, covenanted and represented to
Franchisor that:

     25.01.    All of the issued and outstanding stock of Franchisee is owned,
legally and beneficially, by the person or persons listed on Exhibit "B"
                                                   ---------------------
attached hereto.
---------------

     25.02.    The above-named person or persons has (have) individually, and
jointly and severally, executed this Agreement, and such person, or one of such
persons, is and shall be the chief executive officer of the Franchisee
corporation, holding such corporate office or offices as may be necessary to
maintain and exercise the actual power and authority actively to direct the
affairs of the Franchisee.

     25.03.    Franchisee is validly incorporated and duly existing under the
laws of the State of ________________________, is duly qualified to conduct
business therein, and has its principal place of business at __________________
____________________. Franchisee shall promptly notify Franchisor in writing of
any change thereto during the term of this Agreement.

                {SIGNATURE PAGE TO FRANCHISE AGREEMENT FOLLOWS}

                                       35
<PAGE>

     IN WITNESS WHEREOF, the parties hereto, intending to be legally bound
hereby, have duly executed, sealed, and delivered this Agreement in triplicate
on the day and year first above-written.

WITNESS:                                     FRANCHISOR:
                                             AFC ENTERPRISES, INC.

__________________________              By:  __________________________________

__________________________

WITNESS:                                     FRANCHISEE:

__________________________              By:  __________________________________

__________________________

                    {SIGNATURE PAGE TO FRANCHISE AGREEMENT}

                                       36
<PAGE>

                                  EXHIBIT "A"
                                  -----------

                                CHURCHS CHICKEN
                              FRANCHISE AGREEMENT

                          NOTICE OF COMMENCEMENT DATE
                          ---------------------------

Name of Franchisee: _____________________________________________________

Franchise Agreement Dated: ______________________________________________

Franchise Premises Address: _____________________________________________

_________________________________________________________________________

_________________________________________________________________________

Store Number: ___________________________________________________________

     NOTICE is hereby given to the abovementioned Franchisee pursuant to Section
2.01 of the Franchise Agreement that the Term of the abovementioned Franchise
Agreement commenced on ________________, 20___, and that the Term shall expire
on ________________, _____, unless the Franchise Agreement is terminated
earlier, pursuant to its terms and conditions.

                                        AFC ENTERPRISES, INC.

                                        By:  __________________________________
                                        Title:  _______________________________
                                        Date of Notice:  ______________________

                                       37
<PAGE>

                                  EXHIBIT "B"
                                  -----------

                          SHAREHOLDERS OF FRANCHISEE
                          --------------------------

                          (For Corporate Franchisees)

 Name of                 Number of              % Ownership
Shareholders              Shares               of Franchisee             Title
------------              ------               -------------             -----

                                       38
<PAGE>

                                  EXHIBIT "C"
                                  -----------

                                PROTECTED AREA
                                --------------

                                       39

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