factual

What is the Browns Chicken Sublessee required to obtain from the Sublessor before changing banks?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Sublessee may not make any change in its banking relationships, including any change in the account number of its general operating account, or any change in banks, without Sublessor's prior written approval.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to the 2025 Browns Chicken Franchise Disclosure Document, a Sublessee must obtain the Sublessor's prior written approval before making any changes to their banking relationships. This includes changing the account number of their general operating account or changing banks altogether.

This requirement is in place because the Sublessee is obligated to make payments to the Sublessor via electronic transfer or automatic debit from their bank account. Browns Chicken needs to ensure that the payment method remains consistent and reliable. The Sublessor needs to be informed of any changes to the Sublessee's banking information to avoid disruptions in payments.

This stipulation is important for prospective Browns Chicken franchisees to consider, as it restricts their autonomy in managing their finances. Failing to obtain prior written approval could potentially lead to a breach of the sublease agreement. Franchisees should maintain open communication with Browns Chicken regarding any banking changes to ensure compliance and avoid penalties.

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.