When is the assignment or transfer fee due for a Browns Chicken franchise?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Assignment or Transfer | $5,000. | Prior to consummation of transfer. | You may not assign your interest without Brown's consent. |
| Additional Training for Assignee Trainee | 20% of initial franchise fee. | Prior to consummation of transfer. | Any proposed assignee must be approved by Brown. |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the assignment or transfer fee of $5,000 is due prior to the consummation of the transfer. This means that a franchisee looking to sell or transfer their Browns Chicken franchise must pay the $5,000 fee before the transfer is finalized.
Browns Chicken requires its consent for any assignment of interest. In addition to the transfer fee, any proposed assignee must be approved by Browns Chicken, and the assignee may be required to complete additional training, which carries a fee of 20% of the initial franchise fee.
It is important for prospective franchisees to understand all the costs associated with transferring a franchise, not just the initial transfer fee. These costs can include training fees for the new franchisee and legal or administrative costs associated with obtaining Browns Chicken's approval. Franchisees should carefully review the franchise agreement and consult with Browns Chicken to fully understand the requirements and costs associated with transferring their franchise.