In the event of a total permanent condemnation of a Churchs Chicken premises, what happens to the sublease?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Total Permanent Condemnation.
In the event of a Condemnation of the entire Premises by reason of condemnation, eminent domain, appropriation, annexation, or taking or sale in lieu, this Sublease shall terminate as of the date of such Condemnation.
As of such date all obligations between Sublessor and Sublessee shall cease including rent and other charges.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, in the event of a total permanent condemnation of the premises, the sublease will terminate as of the date of the condemnation. This applies if the condemnation is due to reasons such as eminent domain, appropriation, annexation, or taking or sale in lieu of such actions.
Upon termination of the sublease due to total permanent condemnation, all obligations between the sublessor and the sublessee, including rent and other charges, will cease as of the date of the condemnation. This means that the Churchs Chicken franchisee will no longer be responsible for paying rent or any other fees associated with the sublease from that date forward.
It is important for a prospective Churchs Chicken franchisee to understand the implications of condemnation clauses in their sublease agreement. While a total permanent condemnation will terminate the sublease and relieve the franchisee of future obligations, it also means the franchisee will lose their business location. Franchisees should also consult legal counsel to understand their rights and obligations in the event of a condemnation and how to protect their interests.