What is the definition of 'lease year' according to the Browns Chicken sublease?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The term of this Sublease (hereinafter the "Term") shall commence on , 20 (hereinafter the "Commencement Date"), and shall continue for a period of () years, terminating on , 20 , which date is at least one (1) day prior to the Commencement Date and each anniversary thereof. expiration of the Lease, unless sooner terminated in accordance with the terms hereof.
The term the "lease year" as used herein shall mean the (12) twelve month period which commences on For each year during the Term, Sublessee shall pay to Sublessor, as minimum rental for the Premises, the sum of Dollars (
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the 'lease year' is defined as a twelve-month period. This period starts on the commencement date of the sublease and each subsequent anniversary of that date.
This definition is important because it establishes the timeframe for which the franchisee will pay the minimum rental amount for the premises. According to the FDD, the franchisee must pay a specified amount in twelve equal monthly installments for each year during the term of the sublease. These payments are due in advance on the first day of each calendar month, without any deductions or set-offs.
Prospective Browns Chicken franchisees should understand the commencement date of their sublease, as this determines the start of each 'lease year' and the schedule for their base rent payments. Paying attention to these dates and understanding the terms can help franchisees manage their finances and avoid potential issues with the sublessor.