What is Churchs Chicken's definition of a 'Casualty' in the context of the sublease agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If any loss, theft, damage to, or destruction of, any of the Premises from any cause whatsoever (a "Casualty") occurs, whether or not covered by insurance, Sublessee will promptly give Sublessor written notice of the Casualty, generally describing the nature and extent of the Casualty.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a 'Casualty' in the context of the sublease agreement refers to any loss, theft, damage to, or destruction of any of the subleased premises, irrespective of the cause or whether it is covered by insurance.
This definition places a clear obligation on the sublessee (the franchisee) to promptly notify the sublessor (Cajun Realty LLC) in writing of any such event, providing a general description of the nature and extent of the casualty. This notification requirement ensures that Churchs Chicken is immediately informed of any incidents affecting the property, allowing them to take appropriate action to protect their interests and potentially assist the franchisee.
The broad scope of the definition, encompassing "any cause whatsoever" and explicitly including events not covered by insurance, highlights the importance of comprehensive insurance coverage for franchisees. It also underscores the franchisee's responsibility to maintain and protect the premises against all potential risks, as they are required to report any incident that falls under this definition, regardless of its severity or insurability.