What is the condition for the mortgagee's agreement not to disturb the Churchs Chicken Sublessee's possession of the premises?

According to the 2025 Churchs Chicken Franchise Disclosure Document, a Churchs Chicken sublessee's obligation to subordinate its interests or attorn to any future mortgagee is contingent upon the mortgagee agreeing not to disrupt the sublessee's possession, quiet enjoyment of the premises, or any other rights under the sublease. This protection is valid only as long as the sublessee remains in compliance with the terms of the sublease agreement.

This condition provides a level of security for the Churchs Chicken franchisee (as a sublessee). It ensures that as long as the franchisee adheres to the sublease terms, their business operations will not be disrupted by actions of the mortgagee, such as foreclosure. This non-disturbance agreement is a fairly standard practice in commercial leasing, offering reassurance to the sublessee that their investment and business activities are protected against potential financial issues of the sublessor.

For a prospective Churchs Chicken franchisee, this clause is crucial. It mitigates the risk of losing their business location due to the sublessor's financial problems, provided they, the franchisee, fulfill their obligations under the sublease. It is important for the franchisee to thoroughly understand and comply with all terms of the sublease to maintain this protection. This clause also highlights the importance of carefully reviewing the sublease agreement and understanding all its conditions before entering into the franchise agreement.