How must the Browns Chicken Sublessee make payments of Base Rent and other amounts due?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 Browns Chicken's 2025 Franchise Disclosure Document, Sublessees are required to make all payments of Base Rent and other amounts due via electronic transfer or automatic debit from their bank account to Browns Chicken. The Sublessee must establish and maintain a specific bank account for the purpose of making these payments to Browns Chicken.
To facilitate these electronic payments, the Sublessee is obligated to execute any documents required by Browns Chicken, allowing them to withdraw the necessary amounts from the Sublessee's general operating checking account. The Sublessee cannot alter their banking relationships, including changing account numbers or banks, without prior written approval from Browns Chicken.
If an electronic bank draft is declined or dishonored due to insufficient funds, the Sublessee will incur a processing fee of $50.00. In such cases, the Sublessee must also immediately address the reason for the dishonored draft and notify Browns Chicken that the issue has been resolved and the draft will be honored. This ensures that Browns Chicken receives payments promptly and maintains control over the payment process, while placing the responsibility on the Sublessee to manage their account and avoid penalties.