factual

What monthly reports is the Browns Chicken sublessee required to provide to the sublessor?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (f) Sublessee will furnish Sublessor with monthly unaudited reports of Gross Sales from the Premises.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to the 2025 Browns Chicken Franchise Disclosure Document, a sublessee is required to furnish the sublessor with monthly unaudited reports of Gross Sales from the premises. This means that each month, the franchisee operating under a sublease agreement must provide a report detailing the total revenue generated from their Browns Chicken location.

These reports are unaudited, meaning they don't need to be certified by an independent accountant. However, the sublessor likely uses these reports to calculate percentage rent or for other financial oversight purposes. It is important for the franchisee to maintain accurate records to ensure these reports are correct.

In addition to the monthly gross sales reports, the franchisee must also provide an annual statement showing the amount of Gross Sales made from the Premises during said period, accompanied by a sworn affidavit verifying the accuracy of said statement. If the Sublessor is not satisfied with the annual statements, they have the right to make a specific audit of the books and records of the Sublessee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.