What notice regarding default must the lease for a Browns Chicken store provide to Brown's?
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 Browns Chicken store, the lease agreement must include specific protections for the franchisor. Specifically, Browns Chicken must receive notice of any default on the lease at least 10 days before any eviction action begins against the franchisee. This allows Browns Chicken time to address the default.
Browns Chicken also has the option to cure the default within 10 days of receiving notice and step in as the lessee, effectively taking over the lease from the franchisee. This provision protects Browns Chicken's interest in maintaining the location for a potential future franchisee.
Furthermore, the lease must be assignable to Browns Chicken if the Franchise Agreement is terminated, either by Browns Chicken due to the franchisee's default or by the franchisee without cause. In conjunction with these lease terms, the franchisee is required to sign a Collateral Assignment of Lease, along with the lessor, as outlined in Rider B of the Franchise Agreement. The franchisee must also provide Browns Chicken with a copy of the signed lease within 10 days of signing it.
These requirements ensure that Browns Chicken has the ability to control the location of its franchises, even if a franchisee is struggling or leaves the system. This is a common practice in franchising, as the location is often a key component of the brand's success.