Regarding a Churchs Chicken sublease, what costs and expenses is the sublessee responsible for after the commencement date, according to the 'net lease' agreement?

According to Churchs Chicken's 2025 Franchise Disclosure Document, a sublease agreement is designed as a "net lease." This means that after the commencement date of the sublease, the sublessee (the franchisee) is responsible for specific costs and expenses related to the operation of the Churchs Chicken business at the premises.

Specifically, the franchisee is responsible for the cost and expense of utilities, all repairs, maintenance, and the appearance of the property. They are also responsible for insurance, real estate taxes, and the general costs of operating the Churchs Chicken business at the specified location.

This type of net lease arrangement is common in franchising, as it shifts many of the ongoing operational costs and risks to the franchisee, while the sublessor (Cajun Realty LLC in this case) receives a more predictable stream of income. Prospective Churchs Chicken franchisees should carefully consider these responsibilities and factor them into their financial projections.