Who has the authority to decide whether to extend the Browns Chicken Franchise Agreement term?
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)
Based on the 2025 Browns Chicken Franchise Disclosure Document, the franchisee (referred to as Assignor in this context) is generally responsible for electing and exercising options to extend or renew the lease for the store premises. However, Browns Chicken retains significant control over this process.
Specifically, the franchisee must exercise these options at least thirty days before the deadline. If the franchisee fails to do so, Browns Chicken is appointed as the franchisee's attorney-in-fact, granting Browns Chicken the authority to exercise the extension or renewal options on behalf of the franchisee. This ensures that Browns Chicken can maintain control over the store's location and continued operation.
This arrangement protects Browns Chicken's interests by preventing a franchisee from allowing a lease to lapse, which could disrupt the business and damage the brand's reputation. It also gives Browns Chicken the power to ensure the location remains viable for a Browns Chicken franchise, even if the franchisee is not proactive in renewing the lease. This is a fairly common practice in franchising, where the franchisor seeks to maintain consistent brand presence and operational control.