How many separate option periods are available for extending the Churchs Chicken Sublease term?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Sublessee shall have the option to extend the Term of this Sublease for up to ( ) separate option periods upon and subject to the terms set forth below in this Section 2(b).
The first extension period (the "First Extension Period") shall commence at the expiration of the Initial Term.
The second extension period (the "Second Extension Period") shall commence at the expiration of the First Extension Period.
The First Extension Period and the Second Extension Period are sometimes referred to herein collectively as the "Extension Periods" and individually as an "Extension Period".
Each Extension Period shall continue for a period of ( ) years from the commencement of such Extension Period.
Except as otherwise expressly provided herein, all of the terms and conditions of this Sublease applicable to the Initial Term shall continue to apply during each Extension Period.
Sublessee's right to extend this Sublease shall be conditioned on Sublessee not at the time being in default of this Sublease beyond any and all applicable notice and cure periods as of the commencement of the Extension Periods.
The Extension Periods shall be renewed Sublessee upon written notification of such election not later than twelve (12) months prior to the expiration of the Initial Term.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the Sublessee has the option to extend the Sublease term for up to a specified number of separate option periods. The exact number of option periods and the length of each period are not defined in the excerpt. The first extension period commences at the expiration of the initial term, and the second extension period commences at the expiration of the first extension period. These periods are collectively referred to as "Extension Periods." Each Extension Period continues for a specified number of years from its commencement, but the exact number of years is not specified in this excerpt.
The right to extend the Sublease is conditional upon the Sublessee not being in default of the Sublease terms beyond any applicable notice and cure periods at the commencement of the Extension Periods. To renew the Extension Periods, the Sublessee must provide written notification of their election to do so at least twelve months prior to the expiration of the Initial Term.
Prospective Churchs Chicken franchisees should carefully review the Sublease agreement and Master Lease to understand the full terms and conditions, including the number of extension periods and their duration. It is important to ensure compliance with all terms to maintain the option to extend the Sublease. Franchisees should also clarify any missing information, such as the exact number of years for each extension period, with the franchisor before signing the agreement.