What is the basis for Browns Chicken's pricing guidance to franchisees?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Brown may from time to time advise or offer guidance to Franchisee relative to prices for the products and services offered for sale by BROWN'S Stores or the Store that, in Brown's judgment, constitute good business practice. Such prices will be based on the experience of Brown or its affiliated companies in operating BROWN'S Stores and an analysis of the costs of such products and services and prices charged for competitive products and services. 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 product or service Franchisee may charge any price for such product or service up to and including the maximum price set by Brown. Notwithstanding the foregoing, Brown reserves the right, to the fullest extent allowed by applicable law, to establish maximum, minimum, or other pricing requirements with respect to the prices Franchisee may charge for products and services.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken may offer pricing guidance to franchisees based on their experience and analysis of costs and competitive prices. This guidance is considered by Browns Chicken to be good business practice.
The pricing guidance Browns Chicken offers is based on the company's experience, or the experience of its affiliated companies, in operating Browns Chicken stores. Browns Chicken also analyzes the costs of the products and services offered, as well as the prices charged by competitors for similar products and services.
Browns Chicken may also set maximum prices for products and services offered at the store. Franchisees can then set their own prices, so long as they do not exceed the maximum price set by Browns Chicken. Browns Chicken retains the right to establish maximum, minimum, or other pricing requirements to the fullest extent allowed by law.