If a Browns Chicken franchisee subleases from Brown, what conditions apply to the sublease agreement?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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.
B. Lease/Leaseback of Premises.
In the event Franchisee either presently owns, or hereafter acquires title to, the real estate on which the Premises are located, Brown has the right to require Franchisee to enter into a lease with Brown. Brown will then sublease the Premises back to Franchisee upon the same terms and
conditions as the lease. So long as Franchisee is in compliance with this Franchise Agreement, Brown will continue to sublease Franchisee the Premises. In the event Franchisee defaults under the Franchise Agreement, Brown has the right to terminate the sublease and take possession of the Premises or sublease them to another party.
C. Development Of Store by Franchisee.
Franchisee agrees to do, or cause to be done, the following:
- (1) Prepare suitable architectural plans and specifications and a site survey for the Store at the Premises, in accordance with Brown's requirements for dimensions, exterior design, materials, parking area, interior layout, equipment, fixtures, furniture, and signs and decorating of a BROWN'S Store and conforming to all applicable ordinances, building, and zoning codes, permit requirements, and lease requirements and restrictions, which plans and specifications must be submitted to and approved in advance by Brown;
- (2) Obtain all required zoning changes and all required health, sanitation, building, utility, sign, and business permits and licenses, and any other required permits and licenses;
- (3) Purchase or lease and install all equipment, fixtures, furniture, and signs required for the Store; and
- (4) Construct all required improvements to and decorate the Premises in compliance with plans and specifications therefor approved by Brown and with all applicable laws.
- (5) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating and installation services; and
- (6) upon completion of construction, furnish Brown final costs for the construction, equipment, build-out, deposits, and total development of the Store.
Franchisee shall complete development of and have the Store ready to open and commence the conduct of its business within a reasonable time after Franchisee obtains possession of the Premises. Franchisee shall have the right to modify approved plans and specifications and the exterior and interior layout of the Premises if and to the extent that Brown reasonably determines that any such modifications become necessary and will not violate any applicable ordinance, building code, zoning code, permit, or lease requirement or restriction.
**5.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee subleases the premises from Browns Chicken, several conditions apply. Browns Chicken has the right to require a franchisee who owns or acquires the real estate to enter into a lease with Browns Chicken, who will then sublease the premises back to the franchisee under the same terms and conditions as the lease. As long as the franchisee complies with the Franchise Agreement, Browns Chicken will continue the sublease. However, if the franchisee defaults, Browns Chicken can terminate the sublease and take possession or sublease to another party.
In the event that the Franchise is terminated, unless it is terminated by the franchisee for cause, the sublease from Browns Chicken to the franchisee will automatically terminate. Browns Chicken also retains significant control over the premises, as they or their representatives can enter the leased premises to make modifications necessary to protect their trademarks or to address any defaults under the Franchise Agreement or the lease.
Furthermore, the franchisee cannot assign or transfer the lease or sublease without Browns Chicken's approval, except when transferring the franchise itself. The franchisee must also not execute a lease that Browns Chicken has disapproved. Upon signing a lease, the franchisee must provide a copy to Browns Chicken within 15 days and execute a Collateral Assignment of Lease, assigning their rights as tenant to Browns Chicken as collateral, which Browns Chicken can exercise upon default. Browns Chicken's approval of a lease or sublease does not provide any warranty regarding its fairness, suitability, or profitability.