If the Assignor owns the land/building, does Browns Chicken have an option to lease the premises?

According to the 2025 Browns Chicken Franchise Disclosure Document, if the Assignor owns the land and/or building where the Browns Chicken store is located, the Assignor grants the Assignee (or its designee) an option to lease the premises. This lease would be on a triple-net basis for the remainder of the current Franchise Agreement term. The rental rate will be a reasonable commercial rate, as determined by a licensed commercial real estate broker selected by the Assignee.

This arrangement provides a potential benefit to the franchisee, as it ensures the possibility of securing the location even if the original owner (Assignor) sells or transfers the franchise. The franchisee has the option to continue operating at the same location under a lease agreement. The rental rate being determined by a commercial real estate broker helps ensure a fair market value.

However, it's important to note that the franchisee must actively exercise this option to lease the premises. The franchisee bears the responsibility of selecting and engaging a licensed commercial real estate broker to determine the rental rate. This also means the franchisee will be responsible for triple-net lease costs, covering property taxes, insurance, and maintenance, in addition to the base rent.