Is the Browns Chicken Sublessee allowed to make deductions from the Base Rent?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
and shall continue for a period of () years, terminating on , 20 , which date is at least one (1) day prior to the Commencement Date and each anniversary thereof. expiration of the Lease, unless sooner terminated in accordance with the terms hereof. The term the "lease year" as used herein shall mean the (12) twelve month period which commences on For each year during the Term, Sublessee shall pay to Sublessor, as minimum rental for the Premises, the sum of Dollars ($) (hereinafter "Base Rent"). Base Rent shall be payable in twelve (12) equal monthly installments of Dollars ($), each in advance on the first day of each and every calendar month during the Term without set-off or deduction whatsoever. In the event the Commencement Date is other than the first day of a calendar month or the Term ends other than on the last day of a calendar month, Base Rent shall be prorated for such financial period and such prorated Base Rent shall be paid promptly to Sublessor. Each payment of Base Rent and all other amounts which Sublessee is required to pay to Sublessor pursuant to this Sublease shall be made by electronic transfer or automatic debit from Sublessee's bank account to Sublessor. Sublessee shall establish and maintain a bank account for the purpose of making payments to Sublessor. Sublessee shall execute such documents as may be required from time to time by Sublessor to permit Sublessor to withdraw from Sublessee's general operating checking account the amounts due Sublessor. Sublessee may not make any change in its banking
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken FDD, the Sublessee is not allowed to make any deductions or set-offs from the Base Rent. The Base Rent is payable in twelve equal monthly installments, in advance on the first day of each calendar month during the term of the sublease. If the commencement date is not the first day of the month, or the term ends on a day other than the last day of the month, the base rent will be prorated for that partial month.
Payments for Base Rent and all other amounts due to the Sublessor must be made via electronic transfer or automatic debit from the Sublessee's bank account. The Sublessee is required to establish and maintain a bank account for these payments and must execute any documents required by the Sublessor to allow withdrawals from this account. The Sublessee cannot change their banking relationships or account numbers without prior written approval from the Sublessor.
If an electronic bank draft is declined due to insufficient funds, the Sublessee will be charged a $50 processing fee. The Sublessee must also immediately correct the issue that caused the draft to be dishonored and notify the Sublessor that the payment will be honored. This strict adherence to payment terms and methods underscores the importance of maintaining sufficient funds and open communication with Browns Chicken regarding financial matters related to the sublease.