Where can the Collateral Assignment of Lease be found in the Browns Chicken Franchise Agreement?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If you lease the premises of the Store, you must obtain Brown's prior consent to the lease terms. The lease must provide that: (1) Brown will receive notice of any default not less than 10 days prior to the commencement of any action to evict you from the Premises; (2) Brown will have, at its option, 10 days after receipt of notice to cure such default and be substituted for you as lessee under the lease; and (3) the lease shall be assigned to Brown, at Brown's option, upon the termination of the Franchise Agreement by Brown in accordance with its terms, or by you without cause as provided in Paragraph A of Section 20 of the Franchise Agreement. You must sign and have the lessor sign the Collateral Assignment of Lease attached to the Franchise Agreement as Rider B.
You must furnish Brown a copy of the signed lease for your Store's premises within 10 days after it is signed.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the Collateral Assignment of Lease is attached to the Franchise Agreement as Rider B. If a franchisee leases the premises for their Browns Chicken store, they must get Browns Chicken's consent for the lease terms.
The lease agreement needs to include specific provisions to protect Browns Chicken's interests. Browns Chicken must receive notice of any default at least 10 days before any eviction action begins. Browns Chicken has the option to cure the default within 10 days of receiving notice and take over the lease as the lessee. Additionally, if Browns Chicken terminates the Franchise Agreement, or if the franchisee terminates the agreement without cause as described in Paragraph A of Section 20, the lease can be assigned to Browns Chicken at their option.
To formalize this arrangement, the franchisee and the lessor must sign the Collateral Assignment of Lease, which is included as Rider B to the Franchise Agreement. The franchisee is then required to provide Browns Chicken with a copy of the signed lease for the store premises within 10 days of signing it. This ensures that Browns Chicken is aware of the lease terms and can exercise its rights if necessary.