Under what condition can Browns Chicken terminate the sublease agreement and take possession of the premises?

According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee owns the real estate where the premises are located, Browns Chicken has the right to require the franchisee to enter into a lease with them. Browns Chicken will then sublease the premises back to the franchisee under the same terms and conditions as the lease. As long as the franchisee complies with the Franchise Agreement, Browns Chicken will continue to sublease the premises to the franchisee.

However, if the franchisee defaults under the Franchise Agreement, Browns Chicken has the right to terminate the sublease and take possession of the premises or sublease them to another party. This clause ensures that Browns Chicken maintains control over the location and operation of its franchises, even if the franchisee owns the property.

This condition is a significant consideration for prospective franchisees who own or plan to acquire the real estate for their Browns Chicken location. It means that even as a property owner, failure to comply with the franchise agreement can result in the loss of both the franchise and the right to operate on their own property. Franchisees should carefully review the terms of the Franchise Agreement and ensure they can meet all obligations to avoid potential default and subsequent termination of the sublease.