Under the Churchs Chicken Sublease Agreement, what is the role of the sublessee?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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EXHIBIT P
CITIES WITH CERTIFIED TRAINING RESTAURANTS
CITIES WITH CERTIFIED TRAINING RESTAURANTS AS OF APRIL 1, 2025*
COMPANY OPERATED
| Rest# | City | State |
|---|---|---|
| 197 | Weslaco | TX |
| 423 | Mission | TX |
| 496 | Montgomery | AL |
| 582 | Opelousas | LA |
| 794 | Brownsville | TX |
| 832 | Plant City | FL |
| 934 | Memphis | TN |
| 1109 | Miami Gardens | FL |
| 1271 | Donna | TX |
| 1329 | Rio Grande City | TX |
| 1431 | McAllen | TX |
| 1446 | Orangeburg | SC |
| 2014 | Brownsville | TX |
| 2026 | Mission | TX |
| 2034 | Pharr | TX |
| 2054 | San Juan | TX |
| 2119 | Denham Springs | LA |
| 3060 | Weslaco | TX |
| 4131 | Jackson | MS |
| 7193 | Monroe | LA |
FRANCHISEE OPERATED
| Rest# | Franchise Entity | City | State | |-------|------------------------------------------------------|-------------------|-------| | 10 | Ampler Chicken, LLC | San Antonio | TX | | 22 | Ampler Chicken, LLC | Laredo | TX | | 130 | Terry & Karen White Enterprises, Inc. | Columbus | MS | | 145 | Border Chicken AZ, LLC | Tucson | AZ | | 679 | Mar-Lu Arizona, LLC | Phoenix | AZ | | 767 | Ampler Chicken, LLC | Kingsville | TX | | 781 | Global Restaurant Hospitality Group, LLC | El Monte | CA | | 893 | Ampler Chicken, LLC | San Antonio | TX | | 1212 | Global Restaurant Hospitality Group, LLC | San Diego | CA | | 1315 | Falcon Holdings, LLC | Chicago | IL | | 1330 | Ampler Chicken, LLC | San Antonio | TX | | 1618 | Global Restaurant Hospitality Group, LLC | Long Beach | CA | | 3105 | Ampler Chicken, LLC | Del Rio | TX | | 4014 | Refuel Operating Company, LLC | Cleveland | MS | | 5662 | Bhatti, Inc. | Phoenix | AZ | | 7082 | Pollo Del Centro, Inc. | Denver | CO | | 8763 | Bhatti, Inc. | Goodyear | AZ | | 8783 | EBLA Corporation | Mabank | TX | | 10153 | Moore's Mini Marts, Inc. | Wilmington | NC | | 10570 | Mar-Lu Nevada, Inc. | Las Vegas | NV | | 11215 | Ampler Chicken, LLC | Harker Heights | TX |
EXHIBIT Q
SUBLEASE
SUBLEASE AGREEMENT
THIS SUBLEASE AGREEMENT (the "Sublease") is made and entered into this day of 20 , (the "Effective Date") by and between CAJUN REALTY LLC, a Delaware limited liability company (the "Sublessor"), and , a [limited liability company/corporation] (the "Sublessee"). W I T N E S S E T H: WHEREAS, Sublessor is the Tenant of a certain leased property described as Church's Texas Chicken Unit No. located at (the "Premises") pursuant to that certain Master Lease Agreement dated , as amended and assigned (collectively, the "Master Lease") between [limited liability company, corporation, etc.] (the "Master Landlord"), as Landlord, and Sublessor, as Tenant (a copy of the Master Lease is attached as Exhibit "A" and reference made a part hereof), it being understood and agreed that the Master Lease and any current or future amendments thereto shall automatically become a part hereof this reference; and WHEREAS, Sublessee desiresto sublease the Premisesfrom Sublessor on the terms and conditions set forth below; NOW, THEREFORE, for and in consideration of TEN DOLLARS ($10.00) in hand paid and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Sublessor and Sublessee hereby agree as follows: 1. Premises. Sublessor hereby demises and subleases unto Sublessee, and Sublessee hereby subleases from Sublessor, the Premises, solely for the use Sublessee solely for the operation of a Church's Texas Chicken restaurant and related products and services and for no other purpose whatsoever without Sublessor's prior written consent. 2. Term. (a) Initial Term. This Sublease shall commence on the Effective (the "Commencement Date") and expire on unless earlier terminated pursuant to the terms of this Sublease or the Master Lease (the "Initial Term"). (b) [OPTIONAL] Extension Period(s). Sublessee shall have the option to extend the Term of this Sublease for up to ( ) separate option periods upon and subject to the terms set forth below in this Section 2(b). The first extension period (the "First Extension Period") shall commence at the expiration of the Initial Term. The second extension period (the "Second Extension Period") shall commence at the expiration of the First Extension Period. The First Extension Period and the Second Extension Period are sometimes referred to herein collectively as the "Extension Periods" and individually as an "Extension Period". Each Extension Period shall continue for a period of ( ) years from the commencement of such Extension Period. Except as otherwise expressly provided herein, all of the terms and conditions of this Sublease applicable to the Initial Term shall continue to apply during each Extension Period. Sublessee's right to extend this Sublease shall be conditioned on Sublessee not at the time being in default of this Sublease beyond any and all applicable notice and cure periods as of the commencement of the Extension Periods. The Extension Periods shall be renewed Sublessee upon written notification of such election not later than twelve (12) months prior to the expiration of the Initial Term. Initial Term and Extension Periods may be hereinafter referred to as "Term".
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- Master Lease. Except as modified herein, this Sublease and all of the rights of the parties hereunder are subject and subordinate to the Master Lease. Sublessee agrees to be bound by and satisfy all of the covenants, terms and conditions of the Master Lease applicable to the Premises, its occupancy thereof, and Sublessor's duties and obligations under said Master Lease applicable to the Premises. Sublessee covenants and agrees to refrain from violating or breaching any of the terms, covenants or conditions of the Master Lease or this Sublease. Except for the surrender, turn over and holdover rents provisions, to the extent of any conflict between the terms of this Sublease and the Master Lease, the terms of this Sublease shall control. If the Master Lease is terminated for any reason whatsoever, this Sublease shall automatically terminate at such time.
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- Other Agreements. Sublessee agrees to comply with all of the terms and conditions of any franchise agreement, development agreement, asset purchase agreement, promissory note, this Sublease and any guaranty, or other agreement entered into by Sublessee (collectively, the "Agreements"), any of its Affiliates (for the purposes of this Sublease, "Affiliate" shall mean any individual, group, association, limited or general partnership, corporation or other business entity which directly or indirectly controls the Sublessee, is controlled by, or is under common control with the Sublessee, or which directly or indirectly owns, controls, or holds power to vote ten percent (10%) or more of the outstanding voting securities of Sublessee, or which has in common one or more partners, officers, directors, trustees, branch managers, or other persons occupying similar status or performing similar functions), predecessors, or successors and Sublessor or any of its Affiliates, predecessors, or successors. Any default by Sublessee of any of the Agreements listed in this Section 4 above shall, at the option of Sublessor be and constitute a default under this Sublease, such that the Agreements listed in this Section 4 above and this Sublease are cross-defaulted. To the extent that any insurance requirements, record or bookkeeping requirements, or any other requirements in the above-described franchise, development, or other agreements require more from the Sublessee than the respective provisions of this Sublease, than the provisions of said franchise, development, and other agreements shall supersede and control.
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- Rent. Beginning on the Commencement Date, Sublessee shall pay to Sublessor fixed rent ("Base Rent") for each year of the Lease Term, to be due and payable without prior demand, offset or deduction whatsoever, in monthly installments in advance on the first day of each month during the Lease Term in accordance with the Rider to Sublease Agreement, attached hereto and made a part hereof.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the Sublessee's primary role is to sublease the premises from the Sublessor for operating a Church's Texas Chicken restaurant. The Sublessee must use the premises solely for this purpose, and any other use requires the Sublessor's prior written consent. The Sublessee also agrees to comply with the terms and conditions of the franchise agreement, development agreement, asset purchase agreement, promissory note, the Sublease, and any guaranty or other agreement they enter. A default by the Sublessee in any of these agreements can be considered a default under the Sublease, creating a cross-default provision.
The Sublessee is responsible for several financial obligations, including paying real estate taxes and sales taxes applicable to the premises as additional rent. They must also cover the costs of obtaining the Master Landlord's approval of the Sublessee and consent to the Sublease Agreement, if applicable. Additionally, the Sublessee is responsible for performing or ensuring the performance of all major and structural repairs related to the premises. They are also required to maintain insurance against physical loss or damage to the premises and against consequential losses arising from such damage.
The Sublessee is obligated to make all rent payments via ACH from their business account, according to an automatic debit agreement. However, if the Master Landlord notifies the Sublessee of an event of default by the Sublessor under the Master Lease, the Sublessee must deliver all rent as directed by the Master Landlord. The Sublessee must also refrain from violating any terms of the Master Lease or the Sublease. The Sublessee's obligations are also subject to subordination and attornment conditions, requiring them to agree to certain terms requested by the Sublessor's mortgagee, such as providing notice of default and allowing the mortgagee to cure any default by the Sublessor.