Under what circumstances can the Browns Chicken sublessor adjust the monthly deposit for Taxes?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Browns Chicken's 2025 Franchise Disclosure Document, the sublessor can adjust the monthly deposit for taxes under specific circumstances. The monthly deposit, initially set by the sublessor on an annual basis to cover real estate, personal property, and other taxes related to the premises, can be modified if there's a change in the amount of these taxes.
Additionally, Browns Chicken's sublessor can adjust the deposit if they determine that the funds they currently hold are, or will become, insufficient to cover the upcoming tax payments. This provision ensures that the sublessor maintains adequate reserves to meet the tax obligations associated with the property.
For a prospective Browns Chicken franchisee, this means that the amount they pay monthly for tax deposits as part of their sublease agreement could fluctuate. These adjustments are contingent on changes in the overall tax amount or the sublessor's assessment of the funds needed to cover these taxes. It is important for franchisees to stay informed about potential tax changes and to maintain open communication with the sublessor to understand any adjustments to their monthly deposit.