Are there any circumstances under which the waiver of claims would not apply to a Churchs Chicken sublease?

According to the 2025 Churchs Chicken Franchise Disclosure Document, the waiver of claims in a sublease agreement between the Sublessor and Sublessee does not apply if it would invalidate any insurance coverage held by either party. This means that if enforcing the waiver would cause either the Sublessor's or Sublessee's insurance policy to become invalid, the waiver will not be enforced, but only to the extent of such effect.

This exception protects both parties from unintentionally losing their insurance coverage due to the waiver. It ensures that the insurance policies remain in effect, providing financial protection against potential losses. Additionally, the waiver of claims applies to any deductible as if it were part of the insurance recovery.

In practical terms, a Churchs Chicken franchisee (Sublessee) needs to ensure their insurance coverage remains valid when agreeing to the waiver of claims in the sublease. If a claim arises that is typically covered by insurance, the franchisee can expect the waiver to be enforced, preventing them from pursuing claims against the Sublessor, provided that doing so does not invalidate their insurance coverage. This encourages both parties to maintain adequate insurance and rely on it for covered losses, streamlining the claims process and avoiding potential legal disputes.