Where should the Browns Chicken sublessee deliver the complete statement of Gross Sales?

According to Browns Chicken's 2025 Franchise Disclosure Document, the sublessee must deliver the complete statement of Gross Sales to the sublessor at the location where the Base Rent is payable. This statement, signed by the sublessee or their authorized representative, should detail the Gross Sales made from the premises during the specified period and be accompanied by a sworn affidavit verifying its accuracy.

This requirement ensures that Browns Chicken, as the sublessor, receives accurate financial information to calculate and collect Percentage Rent, which is due within thirty days after the end of each lease year. The sublessee is responsible for providing this statement on or before the thirtieth day following the expiration of each full lease year, starting from the end of the first lease year, and also within thirty days after the expiration of any fractional year at the end of the term.

Browns Chicken retains the right to audit the sublessee's books and records if they are not satisfied with the submitted annual statements. If an audit reveals that the Gross Sales figure was understated by more than three percent, the sublessee is responsible for paying the additional Percentage Rent due and covering the cost of the audit. Conversely, if the audit confirms the sublessee's statement to be accurate within a three percent variance, the sublessor bears the audit expenses. This process ensures financial transparency and accountability between Browns Chicken and its sublessees.