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Church’s Chicken

Interested in selling your Church’s Chicken NNN property or Church’s Chicken ground lease property and was wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Church’s Chicken NNN property for sale or Church’s Chicken ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Church’s Chicken NNN property or the inclusion of a Church’s Chicken ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Church’s Chicken properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of 2024, Church’s Chicken operates over 1,500 restaurants in 26 countries, including the United States. In the U.S., the brand has over 900 locations, with the strongest presence in the Southeastern and Southwestern states.

Revenue and income

Church’s Chicken is privately held, so exact financials are not publicly disclosed.
However, industry reports estimate that annual systemwide sales exceed $1.2 billion across all franchised and company-operated locations.

Future plans

Church’s Chicken is actively working on:

  • Expanding globally with key emphasis on Asia, the Middle East, and Latin America.
  • Store remodeling, including modernized dining areas and upgraded exteriors.
  • Digital investments, such as online ordering, app-based promotions, and third-party delivery partnerships.
  • Expanding its sister brand Texas Chicken internationally (used outside the U.S.)

Corporate vs. franchise

Church’s Chicken is primarily a franchise-driven brand.

  • Approximately 90% of its restaurants are franchised.
  • Franchisees typically pay:
  1. Franchise fee: around $15,000–$30,000 per location
  2. Royalty fee: 5% of gross sales
  3. Marketing fee: 4% of gross sales (varies by region)

Additional Information on Church’s Chicken Properties

  1. Founded in 1952 by George W. Church Sr. in San Antonio, Texas.

  2. Originally focused on fried chicken only—biscuits and side items were added in 1955.

  3. Known for its hand-battered fried chicken, honey-butter biscuits, and Southern-style sides.

  4. The company operates internationally under the brand name Texas Chicken in many countries.

  5. Church’s Chicken was acquired by High Bluff Capital Partners in 2021.

Church’s Chicken History

Church’s Chicken began its journey in 1952, when George W. Church Sr. opened the first location across from the Alamo in San Antonio, Texas. Originally named Church’s Fried Chicken To-Go, the restaurant focused solely on serving freshly prepared, crispy fried chicken. The concept quickly gained popularity due to its affordable prices and flavorful Southern-style recipe.

By the 1960s and 1970s, Church’s expanded rapidly through franchising, becoming one of the largest quick-service chicken brands in the United States. In 1966, the menu grew beyond fried chicken and introduced signature jalapeño peppers, followed by honey-butter biscuits in the 1980s, which helped define the brand identity.

As the company continued to grow, it entered international markets under the name Texas Chicken, allowing the brand to reach consumers across Asia, the Middle East, Europe, Latin America, and the Caribbean.

Today, Church’s Chicken operates more than 1,500 locations worldwide and remains known for its hand-battered fried chicken, scratch-made biscuits, and Southern-style comfort menu. Now under the ownership of High Bluff Capital Partners (acquired in 2021), Church’s continues to innovate through modern store designs, digital ordering technologies, and expanded global development.

Why Invest in Ground Lease and NNN Lease of Church’s Chicken?

Investing in Church’s Chicken ground lease and triple net (NNN) lease properties offers several advantages for real estate investors:

1) Church’s Chicken NNN Property Investment: Stable income

Church’s Chicken is one of the largest quick-service chicken chains in the United States, with a strong global presence. Its brand recognition and consistent customer traffic help ensure reliable, long-term rental income for property owners.

2) Church’s Chicken NNN Property Investment: Established tenant

With over 70 years in operation and more than 1,500 restaurants worldwide, Church’s Chicken is a proven and stable tenant. Strong brand identity and consistent performance reduce the risk of vacancy and tenant turnover.

3) Church’s Chicken NNN Property Investment: Low management responsibility

In both ground and NNN lease structures, the tenant typically covers property taxes, insurance, maintenance, and repairs. This creates a hands-off investment with minimal landlord involvement.

4) Church’s Chicken NNN Property Investment: Favorable lease terms

Church’s Chicken leases often feature long-term agreements, typically 15–20 years, with built-in rent escalations. These terms provide predictable income growth and long-term stability.

5) Church’s Chicken NNN Property Investment: Strong real estate fundamentals

Church’s Chicken sites are often placed in dense residential areas and high-traffic retail corridors, which support property value appreciation over time. Many locations also benefit from drive-thru operations, enhancing sales and tenant performance.

Pros and Cons of Church’s Chicken Ground Lease and NNN Lease Investment

Pros:

  1. Stable income due to strong brand recognition and nationwide presence.

  2. Reliable long-term tenant, reducing vacancy and default risk.

  3. Minimal landlord responsibilities because the tenant handles most property expenses.

  4. Long lease terms with rent escalations offering steady income growth.

  5. Drive-thru locations strengthen tenant sales and asset performance.

Cons:

  1. Lease renewal risk once the initial term expires.

  2. Performance dependency on Church’s Chicken’s operations and market competitiveness.

  3. Regional competition in the quick-service chicken market (e.g., KFC, Popeyes, Chick-fil-A).

  4. Limited landlord control due to typical NNN lease structures.

  5. Real estate market fluctuations may affect long-term appreciation and demand.

Just like any NNN investment, thorough due diligence, evaluation of location, review of lease terms, and understanding tenant financial strength are crucial.
Consulting with NNN real estate professionals or financial advisors can help ensure the investment aligns with your long-term goals and risk profile.

MarketWatch: Church’s Chicken

MarketWatch: Church’s Chicken

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