What is the Assignor required to do regarding lease extension options for their Browns Chicken franchise?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignor agrees that it will not suffer or permit any surrender, termination, amendment or modification of the Lease without the prior written consent of Assignee. Throughout the term of the Franchise Agreement and any renewals thereof, Assignor agrees that it shall elect
and exercise all options to extend the term of or renew the Lease not less than thirty (30) days prior to the last day that said option must be exercised, unless Assignee otherwise agrees in writing, and upon failure of Assignor to so elect to extend or renew the Lease as aforesaid, Assignor hereby appoints Assignee as its true and lawful attorney-in-fact to exercise such extension or renewal options in the name, place and stead of Assignor for the sole purpose of effecting such extension or renewal.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, if the Assignor owns the land or building where the Browns Chicken store is located, they must elect and exercise all options to extend or renew the lease. This must be done no less than thirty (30) days before the deadline to exercise the option, unless the Assignee (the new franchisee) agrees otherwise in writing.
If the Assignor fails to extend or renew the lease as required, they appoint the Assignee as their attorney-in-fact. This allows the Assignee to exercise the extension or renewal options in the Assignor's name, place, and stead. This ensures the lease can be extended or renewed, securing the premises for the Browns Chicken franchise.
This provision protects the incoming Browns Chicken franchisee by ensuring the continuity of the lease. It prevents the Assignor from neglecting lease renewals, which could jeopardize the franchisee's ability to operate the business. By granting the Assignee the power of attorney, Browns Chicken ensures that lease extensions are handled even if the Assignor fails to act, safeguarding the franchisee's investment and business operations.