What fee does the Browns Chicken Sublessee have to pay if an electronic bank draft is declined?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
shall establish and maintain a bank account for the purpose of making payments to Sublessor. Sublessee shall execute such documents as may be required from time to time by Sublessor to permit Sublessor to withdraw from Sublessee's general operating checking account the amounts due Sublessor. Sublessee may not make any change in its banking
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, if a Sublessee's electronic bank draft is declined, dishonored, or refused due to insufficient funds, the Sublessee must pay the Sublessor a processing fee of $50.00.
In addition to the processing fee, the Browns Chicken Sublessee is also required to immediately address the reason for the dishonored bank draft and inform the Sublessor that the electronic bank draft will be honored. This implies the Sublessee needs to ensure sufficient funds are available and communicate this to the Sublessor promptly.
This policy ensures that Browns Chicken Sublessors are compensated for the administrative burden and potential financial disruption caused by declined electronic payments. It also incentivizes Sublessees to maintain adequate funds in their accounts to avoid such issues and maintain a smooth payment process.