Where must a Browns Chicken sublessee keep books and records of sales?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Sublessee shall keep in the Premises or in some other location of which Sublessor shall have been notified in writing, a permanent, accurate set of books and records of all sales and all revenue derived from business conducted in the Premises during each day of the Term, and supporting records, including excise tax reports, state sales tax and business and occupation tax reports. Such records will be kept, retained, and preserved for at least three (3) years after the expiration of each lease year. All such records, including sales, business and occupation tax reports, shall be open to inspection and audit by Sublessor and/or its agents at all reasonable times during ordinary business hours.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, a sublessee must keep a permanent and accurate set of books and records of all sales and revenue derived from business conducted on the premises. These records must be maintained either on the premises or at another location, provided that the sublessor has been notified of the alternative location in writing.
These records must include supporting documentation such as excise tax reports, state sales tax, and business and occupation tax reports. Browns Chicken requires that these records be kept, retained, and preserved for a minimum of three years following the end of each lease year.
Browns Chicken or its agents have the right to inspect and audit these records at any reasonable time during ordinary business hours. This ensures that Browns Chicken can verify the accuracy of reported gross sales and compliance with the sublease agreement.