Can a franchisee assign their Browns Chicken Preliminary Agreement to someone else?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Preliminary Agreement | Summary |
|---|---|---|
| e. Assignment by | Paragraph 7 | You may not assign agreement |
| Franchisee |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–38)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, a franchisee is not permitted to assign their Preliminary Agreement to another party. The FDD outlines this restriction in Item 17, specifically referencing Paragraph 7 of the Preliminary Agreement. This means that the franchisee cannot transfer their rights or obligations under the Preliminary Agreement to someone else.
This restriction is important for prospective Browns Chicken franchisees to understand, as it limits their flexibility in the event they wish to exit the agreement before signing a full franchise agreement. Unlike the Franchise Agreement itself, which Browns Chicken can fully assign, the franchisee does not have the same right regarding the Preliminary Agreement.
Additionally, the Video Gaming Rider G, if applicable, also contains a similar restriction. Paragraph 22 of the Video Gaming Rider G states that a franchisee may not assign the rider, even if they assign the Franchise Agreement. This further restricts the franchisee's ability to transfer agreements related to the Browns Chicken franchise.