Under the Churchs Chicken sublease agreement, what happens if the Master Lease is terminated?

According to the 2025 Churchs Chicken Franchise Disclosure Document, the sublease agreement between Cajun Realty LLC and the sublessee automatically terminates if the Master Lease is terminated for any reason. This means that if the Master Lease, which is the primary lease agreement between Cajun Realty LLC (as the tenant) and the Master Landlord, is terminated, the Churchs Chicken franchisee's sublease is also terminated automatically at that time.

This condition is significant for a prospective Churchs Chicken franchisee because it highlights the franchisee's dependence on the Master Lease. If the Master Lease is terminated due to issues between Cajun Realty LLC and the Master Landlord (which are outside of the franchisee's control), the franchisee could lose their location, regardless of whether they are in good standing with Cajun Realty LLC. This adds a layer of risk for the franchisee, as their business operations are tied to the stability of the Master Lease.

Prospective franchisees should carefully review the Master Lease (Exhibit A, as referenced in the Sublease Agreement) to understand the conditions under which it could be terminated. They should also inquire with Churchs Chicken about the history and stability of their Master Lease agreements to assess the potential risk associated with this termination clause. Understanding the terms of the Master Lease and the relationship between Churchs Chicken and the Master Landlord is crucial for making an informed investment decision.