exception

What exceptions exist to the Churchs Chicken Sublessee's obligation to indemnify the Sublessor?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

In any event, Sublessor shall not be liable for and Sublessee shall indemnify and hold Sublessor harmless from any loss, cost, damage, expense, or liability arising from Sublessee's or Sublessee agent's, contractor's, employee's or invitee's entry upon the Premises, whether before or after the Commencement Date; other than damages proximately caused by reason of the gross negligence or willful misconduct of Sublessor or its agents and employees.

Source: Item 23 — RECEIPT (FDD pages 68–406)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, a Sublessee is not required to indemnify the Sublessor for losses, costs, damages, expenses, or liability arising from the Sublessee's or their agents', contractors', employees', or invitees' entry upon the premises if the damages are proximately caused by the gross negligence or willful misconduct of the Sublessor or its agents and employees. This means that if the Sublessor's actions or inactions directly lead to damages, the Sublessee is not responsible for covering those costs.

This exception protects the Sublessee from being held liable for issues caused by the Sublessor's own negligence or intentional misconduct. It ensures that the Sublessor cannot shift responsibility for their own actions onto the Sublessee. This is a crucial protection for the Sublessee, as it limits their financial exposure to damages they did not cause.

It is important to note that this exception only applies to damages proximately caused by the gross negligence or willful misconduct of the Sublessor. If the damages arise from other causes, such as the Sublessee's own negligence or the actions of third parties, the Sublessee may still be required to indemnify the Sublessor. Prospective Churchs Chicken franchisees should carefully review the sublease agreement and consult with legal counsel to fully understand their indemnification obligations and the exceptions that apply.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.