Under what conditions can Browns Chicken take possession of the premises and expel the Assignor?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Upon a default by Assignor under the Lease or under the franchise agreement for a BROWN's Store to be operated at the Premises, between Assignee and Assignor (the "Franchise Agreement"), or in the event of a default by Assignor under any document or instrument securing said Franchise Agreement, or in the event the Franchise Agreement expires without renewal, Assignee shall have the right and is hereby empowered to take possession of the Premises, expel Assignor therefrom, and, in such event, Assignor shall have no further right, title or interest in the Lease.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Browns Chicken, as the Assignee, has the right to take possession of the premises and expel the Assignor under specific circumstances related to defaults and the franchise agreement.
Specifically, Browns Chicken can take possession if the Assignor defaults under the lease agreement for the Browns Chicken store, defaults under the franchise agreement itself, or defaults under any document or instrument securing the franchise agreement. Additionally, if the franchise agreement expires without being renewed, Browns Chicken has the right to take possession of the premises and expel the Assignor.
This provision protects Browns Chicken's interest in maintaining control over the location and operation of its franchises. It ensures that if a franchisee fails to meet their obligations, Browns Chicken can step in to maintain the business or transfer it to a more capable operator. This is a fairly standard clause in franchise agreements, designed to safeguard the brand and the network's overall performance.
The Assignor, upon such expulsion, loses all rights, title, and interest in the lease. This underscores the importance of franchisees adhering to the terms of both their lease and franchise agreements to avoid losing their business location. Prospective franchisees should carefully review these default provisions with legal counsel to fully understand the potential consequences.