Under what conditions can an Assignee take possession of the premises of a Browns Chicken franchise?

According to the 2025 Browns Chicken Franchise Disclosure Document, an Assignee's right to take possession of the premises is tied to the Assignor's default or failure to renew the franchise agreement. Specifically, if the Assignor defaults under the lease, the franchise agreement with the Assignee, or any document securing the franchise agreement, the Assignee has the right to take possession of the premises and expel the Assignor. Additionally, if the franchise agreement expires without renewal, the Assignee retains the right to take possession. This clause protects the Assignee's investment and ensures continuity of the Browns Chicken business at the location.

Browns Chicken also has the right to take possession of the premises under a lease/leaseback arrangement. If the franchisee owns the real estate, Browns Chicken can require the franchisee to lease the property to them, and Browns Chicken will then sublease it back to the franchisee. As long as the franchisee complies with the franchise agreement, the sublease continues. However, if the franchisee defaults, Browns Chicken can terminate the sublease and take possession or sublease to another party. This arrangement gives Browns Chicken control over the location and ensures consistent brand standards.

Furthermore, Browns Chicken maintains some control over the leased premises even without a direct lease/leaseback. The lease agreement must stipulate that Browns Chicken receives notice of any franchisee default from the landlord, allowing Browns Chicken the option to cure the default and become the lessee. The lease must also allow for assignment to Browns Chicken if the franchise agreement is terminated. This ensures that Browns Chicken can maintain a presence at the location, even if the original franchisee is no longer operating the business. Browns Chicken also has the right to enter the premises to make modifications necessary to protect their trademarks or to cure any default under the franchise agreement or the lease.

Finally, if a Browns Chicken franchisee loses possession of the store for any reason before the franchise term expires, they are required to diligently search for a new location. Failure to do so can result in the franchisee being liable to Browns Chicken for lost royalties and other damages for the remainder of the franchise term. This clause ensures that Browns Chicken's revenue stream is protected, even if a specific location becomes unavailable.