Does the waiver of claims in the Churchs Chicken sublease apply to negligence by a party or their agents?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Anything in this Sublease to the contrary notwithstanding, Sublessor and Sublessee each hereby waives any and all rights of recovery, claim, action or cause of action against the other for any loss or damage that may occur to the Premises or any improvements thereto, or any personal property of Sublessor or Sublessee, arising from any cause that is insured against, and for which insurance proceeds are actually paid the claimant, under the terms of any property insurance actually carried, regardless of whether the same is required hereunder.
The foregoing waiver shall apply regardless of the cause or origin of such claim, including but not limited to the negligence of a party, or such party's agents, officers, employees or contractors.
The foregoing waiver shall not apply if it would have the effect, but only to the extent of such effect, of invalidating any insurance coverage of Sublessor or Sublessee.
The foregoing waiver shall also apply to any deductible, as if the same were a part of the insurance recovery.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the sublease agreement includes a waiver of claims. This waiver means that both the sublessor and sublessee agree to give up any rights to sue each other for losses or damages to the premises or personal property, provided the damages are covered by an insurance policy and the insurance company actually pays out on the claim.
This waiver specifically applies regardless of the cause of the damage, even if it's due to negligence. This includes negligence by either party (the sublessor or sublessee), or their agents, officers, employees, or contractors. Essentially, if damage occurs and is covered by insurance, neither party can sue the other, even if the damage was caused by someone's carelessness.
However, there's an important exception: the waiver doesn't apply if it would invalidate either party's insurance coverage. Also, the waiver does apply to any insurance deductible, treating it as part of the overall insurance recovery. This clause encourages both parties to rely on their insurance policies for covered damages, rather than pursuing legal action against each other, potentially streamlining the recovery process and avoiding costly litigation.