What is the Browns Chicken Sublessee required to do regarding a bank account for payments?
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 the 2025 Browns Chicken Franchise Disclosure Document, a Sublessee is required to establish and maintain a bank account for the purpose of making payments to the Sublessor. The Sublessee must make each payment of base rent and all other required amounts via electronic transfer or automatic debit from this dedicated bank account.
The Browns Chicken Sublessee is also obligated to execute any documents required by the Sublessor to permit withdrawals from the Sublessee's general operating checking account. Furthermore, the Sublessee cannot alter their banking relationships, including changes to the account number or banks, without prior written approval from Browns Chicken.
In the event that an electronic bank draft is declined due to insufficient funds, the Browns Chicken Sublessee will be charged a $50.00 processing fee. The Sublessee must also immediately address the reason for the dishonored draft and notify the Sublessor that the issue has been resolved and the electronic bank draft will be honored.