Under the Browns Chicken sublease, is the sublessee required to make all repairs, alterations, additions, or replacements to the premises required by any law or ordinance?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Sublessee agrees, at its sole cost and expense: to keep the Premises, building, site, equipment, facilities and fixtures therein (including glass, heating systems, air conditioning systems, roof, plumbing fixtures, light fixtures, bulbs, and tubes) neat, clean and in good order, condition, repair and state of cleanliness, both of the interior and exterior (including snow removal); to repair any and all damage thereto, whether or not caused by the fault or act of any person: to perform all necessary decorating and painting; to make all repairs, alterations, additions, or replacements to the Premises (including building, site, equipment, facilities, and fixture. therein) required by any law or ordinance or any order or regulation of any public authority; to keep the Premises equipped with all safety appliances required; to obtain and furnish any licenses and permits required by reason of its use of the Premises: and to comply with the orders and regulations of all governmental authorities.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the sublessee is responsible for all repairs, alterations, additions, or replacements to the premises required by any law or ordinance. Specifically, the sublessee must handle these changes to the building, site, equipment, facilities, and fixtures. This obligation extends to any order or regulation from a public authority.
This requirement means a Browns Chicken franchisee operating under a sublease bears the financial burden of ensuring the premises comply with all current and future legal and regulatory standards. This could include upgrades for safety, accessibility, or environmental regulations. The franchisee cannot rely on the sublessor to cover these costs.
For a prospective Browns Chicken franchisee, this clause highlights the importance of thoroughly assessing the condition of the premises before signing the sublease. It would be prudent to conduct due diligence to identify any existing non-compliance issues or upcoming regulatory changes that could necessitate costly renovations. Understanding these potential expenses upfront is crucial for accurate financial planning.
This type of provision is fairly standard in commercial leases and subleases, as it places the responsibility for compliance on the party operating the business and directly benefiting from the use of the premises. However, franchisees should carefully negotiate the terms of the sublease to ensure they are not assuming responsibility for pre-existing conditions or latent defects.