Does Browns Chicken always set maximum prices, or is it just guidance?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Brown may from time to time advise or offer guidance to you relative to prices for the products and services offered for sale by the Store or by BROWN'S Stores, that in Brown's judgment constitute good business practice. Brown may from time to time set maximum prices on products and services offered from the Store. If Brown has imposed such a maximum price on a particular item, you may charge any price for such item up to and including the maximum price set by Brown. (Paragraph J of Section 10 of the Franchise Agreement.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–30)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken may offer pricing guidance to franchisees, but does not always set maximum prices. Browns Chicken may advise or offer guidance regarding prices for products and services sold at the store, if Browns Chicken believes it constitutes good business practice. Browns Chicken may also set maximum prices on products and services offered from the store. If Browns Chicken sets a maximum price on an item, the franchisee can charge any price up to that maximum.
This means that as a Browns Chicken franchisee, you may receive suggestions from Browns Chicken about pricing, but you are not always required to follow them. However, Browns Chicken retains the right to set a ceiling on prices for certain items, which you must adhere to. You always have the option to price below the maximum price set by Browns Chicken.
This policy provides Browns Chicken with some control over pricing to maintain brand consistency and value, while still allowing franchisees some flexibility to respond to local market conditions. Prospective franchisees should inquire about how frequently Browns Chicken sets maximum prices and on what types of items, to fully understand the potential impact on their pricing strategy.