Under what condition might a Churchs Chicken franchisee sign a Sublease?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
On a limited basis we may sublease the premises of the Church's Restaurant to you. If that occurs you must sign a "Sublease" in addition to the Franchise Agreement and Development Agreement. A copy of our form Sublease is attached as Exhibit Q. The Sublease that you sign may vary from this form based on many factors, such as the underlying lease.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–10)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee may be required to sign a Sublease agreement if Churchs Chicken subleases the restaurant premises to the franchisee. This is noted to occur on a limited basis.
In this scenario, in addition to the standard Franchise Agreement and Development Agreement, the franchisee must also sign a Sublease. The FDD indicates that the specific terms of the Sublease may vary from the standard form, depending on factors such as the underlying lease agreement that Churchs Chicken has for the property.
This means that prospective Churchs Chicken franchisees should carefully review the Sublease agreement, if applicable, to understand their obligations and rights regarding the leased premises. They should pay close attention to details such as rent payments, maintenance responsibilities, and any restrictions on the use of the property, as these could differ from the standard franchise agreement.