Which items in the Browns Chicken Franchise Disclosure Document provide information about pre-opening purchases/leases?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
4. LEASE AND DEVELOPMENT OF STORE.
A. Lease Of Premises.
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."
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 23–24)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Item 22, which covers contracts, discusses pre-opening purchases and leases. Specifically, it addresses the lease and development of the store premises.
Item 22 details that a Browns Chicken franchisee may lease, sublease from Browns Chicken, or purchase the premises for their store. If the franchisee chooses to lease the premises, the lease agreement must include certain provisions that protect Browns Chicken's interests. These provisions include requiring the landlord to notify Browns Chicken of any franchisee defaults, giving Browns Chicken the option to cure the default and take over the lease, and restricting the premises to only being used as a Browns Chicken store.
Additionally, the lease must allow for its assignment to Browns Chicken if the franchise agreement is terminated, either by Browns Chicken or by the franchisee without cause. The document also specifies language that must be included in the lease agreement to ensure Browns Chicken's rights are protected, such as the ability to receive sales data from the landlord and an extended period to cure any defaults.