factual

Can the Browns Chicken sublessee assign or transfer the sublease without the sublessor's consent?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Sublessee shall not assign or in any manner transfer this Sublease or any interest herein or further sublet the Premises or any portion thereof, nor permit occupancy by any other person without the prior written consent of Sublessor; provided that in any and all events Sublessee shall remain primarily liable hereunder.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to the 2025 Browns Chicken Franchise Disclosure Document, a sublessee is prohibited from assigning or transferring their sublease or any interest within, or subletting the premises, without obtaining prior written consent from the sublessor. Even with consent, the sublessee remains primarily liable under the terms of the sublease. This requirement ensures that Browns Chicken maintains control over who operates within their franchised locations and protects their brand standards.

This provision is typical in franchising, as franchisors want to carefully vet and approve any new operators to ensure they meet the brand's standards and have the financial and operational capabilities to succeed. By requiring consent for sublease assignments or transfers, Browns Chicken retains the ability to screen potential new operators and prevent unqualified individuals from taking over a location.

For a prospective Browns Chicken franchisee, this means that if they sublease their location, they cannot simply transfer the sublease to someone else without Browns Chicken's approval. This could impact the franchisee's exit strategy if they decide to sell their business, as the potential buyer would need to be approved by Browns Chicken. Franchisees should discuss with Browns Chicken what criteria they use to evaluate potential sublessees to better understand the approval process.

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.