What constitutes the Security Deposit amount required from the Churchs Chicken sublessee?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ord pursuant to the Master Lease, to the extent that such arise as a result of the Sublessee's failure to comply with the provisions of the Master Lease. As used herein, the term "prevailing party" means the party who, in light of the claims, causes of action, and defenses asserted, is afforded greater relief.
- (e) This Sublease, together with the provisions of the Master Lease applicable to the Premises, containsthe entire agreement of the parties hereto, and no representations, inducements, promises or agreements, oral or otherwise, between the parties not embodied herein shall be of any force or effect.
- (f) This Sublease shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.
- (g) If any one or more of the provisions in this Sublease or the Master Lease are for any reason held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect, the invalidity, illegality, or unenforceability will not affect any other provision of the Sublease or Master Lease, which will be construed as if it had not included the invalid, illegal or unenforceable provision(s).
- (h) The paragraph and section headings in this Sublease are inserted only as a matter of convenience and are not to be given any effect whatsoever in construing this Sublease.
- (i) This Sublease may be executed in multiple counterparts w
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, a sublessee is required to deposit a security deposit with the sublessor. The amount of this Security Deposit will be the greater of either the first and last months' rent, or the amount required under the terms of the Master Lease. This deposit serves as security for the sublessee's performance of all agreements and conditions within the Sublease agreement.
The sublessor has the right to utilize the security deposit to cover any unpaid rent or other outstanding sums owed by the sublessee. It can also be used to rectify any defaults made by the sublessee. If the sublessor uses any portion of the security deposit, the sublessee is obligated to replenish the deposit back to its original amount within thirty days of receiving a written request to do so.
Provided the sublessee adheres to all terms of the Sublease, the security deposit will be returned without interest after the sublessee surrenders possession of the premises as per the Sublease terms. The agreement specifies that the security deposit covenants are personal between the sublessor and sublessee, and do not extend to mortgagees or purchasers at foreclosure sales.