Can a franchisee assign their Browns Chicken Preliminary Agreement?

According to Browns Chicken's 2025 Franchise Disclosure Document, a franchisee is not permitted to assign their Preliminary Agreement. The FDD outlines key provisions of both the Preliminary Agreement and the Franchise Agreement, including details about assignment rights. Specifically, Paragraph 7 of the Preliminary Agreement states that franchisees are prohibited from assigning the agreement. This restriction means a franchisee cannot transfer their rights or obligations under the Preliminary Agreement to another party.

This restriction on assignment is a fairly standard practice in franchising. Franchisors like Browns Chicken want to carefully control who becomes a franchisee and ensures that the initial applicant is the one who proceeds with the franchise if all conditions are met. This allows Browns Chicken to maintain consistency and standards within its franchise system.

Additionally, the Video Gaming Rider G, if applicable, also contains a restriction on assignment. Paragraph 22 of the Video Gaming Rider G states that a franchisee may not assign the Video Gaming Rider G, even if they assign the Franchise Agreement. This further restricts the franchisee's ability to transfer any part of their agreement with Browns Chicken to another party, highlighting the franchisor's intent to maintain strict control over who operates a Browns Chicken franchise and any related services.