What is an 'Institutional Mortgage' as defined in the Churchs Chicken sublease agreement?

According to Churchs Chicken's 2025 Franchise Disclosure Document, an 'Institutional Mortgage' is defined within the context of the sublease agreement. It refers to a mortgage on the landlord's interest in the property where the Churchs Chicken restaurant is located. This mortgage must be held by an 'Institutional Lender'.

An 'Institutional Lender' is specifically defined as one of the following types of entities: a commercial bank, a savings bank, a trust company, an insurance company, any investment fund, investment company, finance company, or other entity that extends credit or buys loans as one of its principal businesses. It also includes any pension, retirement or welfare fund or other nonprofit organization where the investment policy and financial condition of that fund or organization is subject to the supervision of a state agency, in the state where the Premises are situated, that has supervision of banks or, as the case may be, supervision of insurance companies.

For a prospective Churchs Chicken franchisee, this definition is important because it clarifies the types of lenders that could hold a mortgage on the property. If the landlord defaults on their mortgage, it could potentially affect the franchisee's sublease. Understanding who the 'Institutional Mortgagee' is helps the franchisee assess the stability and potential risks associated with the sublease agreement. It is a common practice in franchising to define these terms clearly to avoid ambiguity and protect the interests of all parties involved.