What taxes is the Browns Chicken sublessee responsible for paying?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
To assure the payment by Sublessee of all real estate, personal property, and other taxes and assessments levied upon or with respect to the Premises during the Term, or any portion thereof, of the Lease or this Sublease and for which Tenant is responsible under the Lease ("Taxes"), and the payment of which is hereby undertaken by Sublessee in accordance with Paragraph 7 hereof, Sublessor may require Sublessee to deposit with Sublessor, on the first day of each month of the Term, an amount equal to one-twelfth (l/12th) of the total of all Taxes, the amount of each monthly payment of Taxes to be established by Sublessor on an annual basis, in such amount as Sublessor determines in its reasonable estimation will provide sufficient reserves from which to satisfy the Taxes next becoming due.
The amount of the monthly deposit for Taxes may be adjusted from time to time by Sublessor in the event of a change in the amount of the Taxes, or in the event Sublessor determines that the funds held by it are (or will be) insufficient for the payment of said Taxes.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the sublessee is responsible for paying real estate, personal property, and other taxes and assessments levied upon or with respect to the premises during the term of the lease or sublease. These are taxes for which the tenant is responsible under the lease.
To ensure these taxes are paid, Browns Chicken may require the sublessee to deposit funds with them on the first day of each month. This deposit will equal one-twelfth of the total annual taxes. Browns Chicken will establish the amount of each monthly tax payment on an annual basis, estimating an amount sufficient to cover the taxes due.
The amount of the monthly deposit may be adjusted by Browns Chicken if there is a change in the amount of the taxes or if Browns Chicken determines that the funds held are insufficient to pay the taxes. This ensures that adequate funds are available to cover the tax obligations throughout the year.