How many days does Browns Chicken have to cure a franchisee's lease default after receiving notice?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If you lease the premises of the Store, you must obtain Brown's prior consent to the lease terms. The lease must provide that: (1) Brown will receive notice of any default not less than 10 days prior to the commencement of any action to evict you from the Premises; (2) Brown will have, at its option, 10 days after receipt of notice to cure such default and be substituted for you as lessee under the lease; and (3) the lease shall be assigned to Brown, at Brown's option, upon the termination of the Franchise Agreement by Brown in accordance with its terms, or by you without cause as provided in Paragraph A of Section 20 of the Franchise Agreement. You must sign and have the lessor sign the Collateral Assignment of Lease attached to the Franchise Agreement as Rider B.
You must furnish Brown a copy of the signed lease for your Store's premises within 10 days after it is signed.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee leases the premises for their store, Browns Chicken requires that the lease agreement includes specific provisions to protect their interests. Specifically, Browns Chicken must receive notice of any lease default at least 10 days before any eviction action begins against the franchisee. This allows Browns Chicken time to assess the situation and potentially intervene to prevent the franchisee's eviction.
Furthermore, Browns Chicken has the option to cure the franchisee's default within 10 days of receiving notice. If Browns Chicken chooses to do so, they can step in and be substituted for the franchisee as the lessee under the lease. This provision gives Browns Chicken the ability to maintain control over the store's location, which is critical for maintaining brand consistency and operational standards.
In addition, the lease must include a clause that allows Browns Chicken to assume the lease if the Franchise Agreement is terminated, either by Browns Chicken due to the franchisee's breach or by the franchisee without cause. To ensure these lease terms are in place, Browns Chicken requires the franchisee and the lessor to sign a Collateral Assignment of Lease, which is attached to the Franchise Agreement. The franchisee must also provide Browns Chicken with a copy of the signed lease within 10 days of signing it.