What happens if a Browns Chicken franchisee's lease is cancelled and they do not relocate with approval?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Brown may terminate this Agreement, effective upon delivery of notice of termination to Franchisee, if Franchisee, the Store or the principal owner or owners of the equity or operating control of Franchisee:
- (6) suffers cancellation of or fails to renew or extend the lease or sublease for or otherwise fails to maintain possession of the Premises, unless the Store is relocated with the approval of Brown;
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee's lease is cancelled and they do not relocate with Browns Chicken's approval, Browns Chicken has the right to terminate the Franchise Agreement. This is explicitly stated as grounds for termination.
This means that maintaining possession of an approved premises is a condition of the franchise agreement. If the franchisee loses the lease and fails to secure an alternative location approved by Browns Chicken, they risk losing their franchise.
It is important to note that even if a franchisee is permitted to relocate, they are responsible for all expenses associated with the relocation. Browns Chicken also has the right to charge the franchisee for any services rendered during the relocation process. Furthermore, Browns Chicken can require the franchisee to upgrade the relocated store to meet the current standards for new Browns Chicken locations.