What is the Browns Chicken Sublessee required to do regarding the establishment of a bank account?
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, a Sublessee is required to establish and maintain a bank account for the purpose of making payments to the Sublessor. Browns Chicken requires that all payments of Base Rent and any other amounts the Sublessee is required to pay be made via electronic transfer or automatic debit from the Sublessee's bank account to Browns Chicken as the Sublessor.
The Sublessee must also execute any documents required by Browns Chicken to allow them to withdraw the amounts due from the Sublessee's general operating checking account. The FDD states that the Sublessee cannot make any changes to their banking relationships, including changes to the account number or banks, without prior written approval from Browns Chicken.
If an electronic bank draft is declined, dishonored, or refused due to insufficient funds, the Sublessee must pay Browns Chicken a processing fee of $50.00. The Sublessee is also responsible for immediately resolving the issue that caused the bank draft to be dishonored and must notify Browns Chicken that the electronic bank draft will be honored.