What happens if the mortgagee does not agree not to disturb the Churchs Chicken Sublessee's possession?

According to Churchs Chicken's 2025 Franchise Disclosure Document, the sublessee's obligation to subordinate its interests or attorn to any future mortgagee is dependent on the mortgagee's agreement not to disturb the sublessee's possession and quiet enjoyment of the premises. This protection extends to all the sublessee's rights under the sublease, provided the sublessee remains in compliance with the terms of the sublease agreement.

In practical terms, this clause ensures that if the property owner (Sublessor) defaults on their mortgage, the Churchs Chicken franchisee (Sublessee) can continue operating their restaurant without being evicted by the mortgagee (lender). The mortgagee must agree to honor the terms of the sublease, allowing the franchisee to maintain possession and quiet enjoyment of the premises. This is a crucial protection for the franchisee, as it safeguards their investment and business operations from potential financial troubles of the sublessor.

However, if the mortgagee does not agree to this non-disturbance clause, the Churchs Chicken franchisee's rights under the sublease could be at risk. In such a scenario, a foreclosure could lead to the termination of the sublease, potentially forcing the franchisee to vacate the premises. Therefore, it is essential for prospective franchisees to ensure that any sublease agreement includes a non-disturbance agreement from the mortgagee to protect their interests.