factual

For a Churchs Chicken sublease, is the sublessee responsible for utility connections and charges?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Utilities.

Sublessee shall be solely responsible for and shall promptly pay, when due, the costs of all utility connections within the Premises and all charges for water, gas, electricity, sewerage, telephone, cable, internet, satellite and other utilities used or consumed on the Premises, including connection fees and taxes thereon.

All such utility services shall be obtained directly from and supplied directly by the utility company providing such services and be in the name of Sublessee.

Sublessee shall be responsible for installing utility meters in the Premises, if and when required by utility service providers.

In the case of any utilities or services which are not separately metered and billed directly to Sublessee, but are metered jointly with other premises, Sublessee shall pay to the parties entitled thereto, a pro rata share based on Sublessee's usage of such utilities and services.

Sublessor does not warrant any utility services, connections or facilities whatsoever, and Sublessor shall not be liable in damages or otherwise for any failure or interruption of any utility or other service being furnished to the Premises, and no such failure, interruption, delay in, or inability to provide any utility services, connections or facilities for any reason shall be deemed to be an eviction or disturbance of Sublessee's use or possession of the premises by Sublessor, or to cause Sublessor to be liable to Sublessee therefore, or shall entitle Sublessee to any abatement of, set off or reduction in the amounts payable to Sublessor hereunder or otherwise entitle Sublessee to terminate this Sublease.

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

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, if a franchisee enters into a sublease agreement, they are responsible for all utility connections and charges. The sublessee must promptly pay for all utility connections within the premises, including charges for water, gas, electricity, sewerage, telephone, cable, internet, satellite, and other utilities used on the premises. This includes connection fees and taxes.

The sublessee is required to obtain all utility services directly from the utility company and ensure that the services are in the sublessee's name. Additionally, the sublessee is responsible for installing utility meters on the premises if required by the utility service providers.

In cases where utilities are not separately metered and billed directly to the sublessee but are metered jointly with other premises, the sublessee must pay a pro rata share based on their usage of such utilities and services. Churchs Chicken does not warrant any utility services, connections, or facilities and will not be liable for any failure or interruption of utility services to the premises. Such failures or interruptions do not constitute an eviction or entitle the sublessee to any rent abatement or the right to terminate the sublease.

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.