Is Browns Chicken allowed to operate Browns Chicken stores outside the territory?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
on within the Territory during the term of this Agreement.
If Franchisee's Store is in a shopping mall food court, Franchisee will not have an exclusive territory.
B. Rights Retained by Brown.
Except as expressly limited by Paragraph A above, Brown retains all rights with respect to BROWN'S Stores, the Marks and the sale of any products and services anywhere in the world including without limitation:
- (1) to produce, offer and sell, and to gran
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken retains specific rights regarding Browns Chicken stores outside a franchisee's territory. Browns Chicken has the right to operate Browns Chicken stores or grant others the right to operate Browns Chicken stores located anywhere outside the franchisee's territory, under any terms and conditions Browns Chicken deems appropriate, regardless of the proximity to the franchisee's store. Browns Chicken also retains all rights with respect to Browns Chicken stores, the Marks, and the sale of any products and services anywhere in the world.
This means that while a Browns Chicken franchisee may be granted an exclusive territory, Browns Chicken maintains the right to operate or franchise other locations outside that territory. This could potentially lead to Browns Chicken stores being opened near a franchisee's location, although outside the franchisee's protected territory.
For a prospective Browns Chicken franchisee, this clause highlights the importance of understanding the defined territory and the potential for Browns Chicken to establish other stores nearby. While the franchise agreement may grant certain territorial protections, Browns Chicken retains considerable freedom to expand its brand's presence outside those specific areas. Franchisees should carefully consider the implications of this clause and discuss any concerns with Browns Chicken before entering into a franchise agreement.