Can Browns Chicken assign the Franchise Agreement to another party?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
eement | | e. Assignment by | Paragraph 7 | You may not assign agreement | | Franchisee | | |
B. FRANCHISE AGREEMENT
| Provision | Section in Agreement | Summary |
|---|---|---|
| (a) Length of the franchise term | 2A | Approximately 15 years, subject to earlier termination as provided in the Franchise Agreement. |
| (b) Renewal or extension of the term | 2B | If you are in compliance with the Franchise Agreement and give 6 months’ notice of your intent to renew prior to the end of the term, Brown will renew the franchise for a 1 year (minimum) or 5 year term (maximu |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–38)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken has the right to assign the Franchise Agreement to another party. The FDD outlines various provisions of both the Preliminary Agreement and the Franchise Agreement, including details about assignment rights.
Specifically, Browns Chicken retains the right to fully assign the Franchise Agreement. This means that Browns Chicken can transfer its rights and obligations under the agreement to a third party without needing the franchisee's consent. This is a standard practice in franchising, allowing the franchisor flexibility in business operations, potential mergers, or acquisitions.
However, the franchisee does not have the same right. The franchisee is restricted from assigning the Video Gaming Rider G, even if they assign the Franchise Agreement. Similarly, the franchisee cannot assign the Preliminary Agreement. This asymmetry is common in franchise agreements, where the franchisor maintains greater control over the franchise system. A prospective franchisee should consider this when evaluating the agreement, as it limits their ability to transfer the business freely.