What kind of sworn statements and waivers of lien must the Browns Chicken franchisee obtain?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, when developing their store, a franchisee must obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating, and installation services. This requirement is part of the franchisee's obligations when constructing or remodeling the Browns Chicken store premises.
In practical terms, this means that the Browns Chicken franchisee is responsible for ensuring that all contractors involved in the construction, remodeling, decorating, or installation services provide sworn statements. These statements typically affirm that the contractors have been paid for their work and materials up to a certain date. Additionally, the franchisee must obtain partial and final waivers of lien from these contractors. These waivers relinquish the contractors' rights to file a lien against the property for the amount of work they have been paid for.
This requirement protects Browns Chicken and the franchisee from potential legal claims by contractors who might assert unpaid debts for their services. By obtaining these sworn statements and waivers, the franchisee ensures that there are no outstanding financial obligations to contractors that could lead to liens on the property. This is a standard practice in construction and franchise development to mitigate financial and legal risks.
Failure to obtain these documents could expose the Browns Chicken franchisee to significant financial liabilities and legal disputes. Therefore, it is crucial for franchisees to diligently manage their contractor relationships and ensure compliance with this requirement during the store development process.