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If I am purchasing an existing Browns Chicken outlet, what information might be provided to me?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee may lease, sublease from Brown, or purchase the Premises for the Store. In the event Franchisee leases the Premises, the lease for the Premises shall provide that: (1) Brown shall receive notice from the landlord of any default by Franchisee not less than ten (10) days prior to the commencement of any action to evict Franchisee from the Premises; (2) Brown shall have, at its option, ten (10) days after receipt of notice to cure such default and be substituted for Franchisee as lessee under the lease; and (3) the premises shall be used only for a BROWN Store. The lease for the Premises shall provide further for its assignment to Brown, at Brown's option, upon the termination of this Agreement by Brown in accordance with the terms of this Agreement, or by Franchisee without cause as provided in Paragraph A of Section 20 of this Agreement. The lease shall contain substantially the following provisions:

"Anything contained in this lease to the contrary notwithstanding, Lessor agrees that, without its consent, this lease and the right, title and interest of the Lessee thereunder, may be assigned by the Lessee to Brown's Chicken, LLC, an Illinois limited liability company, or its designee, provided that said Brown's Chicken, LLC or its designee shall execute such documents evidencing its agreement to thereafter keep and perform, or cause to be kept or performed, all of the obligations of the Lessee arising under this lease from and after the time of such assignment."

"Lessor agrees that Lessor shall, upon written request of Brown's Chicken, LLC, disclose to said limited liability company, all reports, information or data in Lessor's possession with respect to sales made in, upon or from the leased premises."

"Lessor shall give written notice to Brown's Chicken, LLC, an Illinois limited liability company (concurrently with the giving of such notice to Lessee), of any default by Lessee under the lease and the said Brown's Chicken, LLC shall have, after the expiration of the period during which the Lessee may cure such default, an additional thirty (30) days to cure, at its sole option, any such default."

"Lessor agrees it will not, without the prior written consent of Brown's Chicken, LLC, modify or terminate this lease. Lessor further agrees it will not grant its consent to the assignment by Lessee of this lease without the prior written consent of Brown's Chicken, LLC"

"Brown's Chicken, LLC or its appointed representatives have the right to enter the leased premises to make any modification necessary to protect the Trademarks of Brown's Chicken, LLC, or to cure any default under the Franchise Agreement or the Lease."

"In the event the Lessee does not exercise any options or rights to renew or extend the Lease, Lessor shall give Brown's Chicken, LLC notice of such failure by Lessee to exercise such options or rights."

Franchisee shall not assign or in any manner transfer the lease or sublease, as the case may be, for the Premises or any interest therein (except in connection with an assignment or transfer of the Franchise or ownership of Franchisee approved by Brown as provided in Section 22), or further sublet the Premises or any part or parts thereof, nor permit occupancy by anyone with, through, or under Franchisee.

Franchisee shall not execute a lease which has for any reason been disapproved by Brown. Franchisee shall deliver a copy of the signed lease for the Premises to Brown within fifteen (15) days of its execution. Franchisee shall execute a Collateral Assignment of Lease, attached hereto as Rider B, by which Franchisee assigns to Brown all of his right, title and interest as tenant under the lease for the Store premises. The assignment is for collateral purposes and may be exercised only upon a default by Franchisee under his lease or under this Agreement. Brown's approval of Franchisee's lease is conditioned on receipt of the signed Collateral Assignment.

Franchisee's execution of a lease for a site for the Store shall constitute acceptance by Franchisee of such site and location and of the terms of such lease, sublease or purchase.

Brown's approval of the lease or sublease does not constitute a warranty or representation of any kind, express or implied, as to its fairness, suitability or profitability or as to Franchisee's ability to comply with its terms.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 39)

What This Means (2025 FDD)

According to Browns Chicken's 2025 Franchise Disclosure Document, if you lease the premises for your Browns Chicken store, the lease agreement must include specific provisions to protect Browns Chicken's interests. The landlord must notify Browns Chicken of any franchisee default at least ten days before eviction proceedings begin, giving Browns Chicken the option to cure the default and take over the lease. The lease must also state that the premises can only be used as a Browns Chicken store.

Furthermore, the lease must be assignable to Browns Chicken if the franchise agreement is terminated, either by Browns Chicken or by the franchisee without cause. The landlord must agree to disclose all sales reports and data related to the leased premises to Browns Chicken upon request. Additionally, the landlord must provide Browns Chicken with an additional 30 days to cure any default, beyond the period allowed for the franchisee. The landlord is prohibited from modifying or terminating the lease or consenting to its assignment by the franchisee without Browns Chicken's prior written consent.

Browns Chicken or its representatives have the right to enter the leased premises to make necessary modifications to protect Browns Chicken's trademarks or to address any defaults under the franchise agreement or the lease. If the franchisee does not renew or extend the lease, the landlord must notify Browns Chicken. The franchisee cannot assign or transfer the lease without Browns Chicken's approval, except when transferring the franchise itself. Browns Chicken's approval of a lease does not constitute a warranty regarding its fairness, suitability, or profitability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.