Who bears the expense of relocating a Browns Chicken store?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Relocation. If Franchisee's lease for the Premises expires or terminates without fault of Franchisee, or if the Premises is damaged, condemned or otherwise rendered unusable, or if, in the judgment of Brown and Franchisee, there is a change in character of the location of the Store sufficiently detrimental to its business potential to warrant its relocation, Brown will grant permission for relocation of the Store to a location and premises approved by Brown, in its sole discretion. Any such relocation shall be at Franchisee's sole expense. Brown shall have the right to charge Franchisee for services Brown renders to Franchisee in connection with such relocation. Brown shall also have the right to require Franchisee to upgrade the relocated Store to conform to Brown's then current image, standards, and specifications for construction and equipment for all new BROWN's Stores.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with relocating their store. Browns Chicken will grant permission for relocation if the lease expires or terminates without fault of the franchisee, if the premises are damaged or condemned, or if Browns Chicken and the franchisee agree that there is a detrimental change in the location's business potential. The new location and premises must be approved by Browns Chicken.
This means that if a Browns Chicken franchisee needs to move their store for any approved reason, they will have to pay for all the costs associated with the move. Browns Chicken also has the right to charge the franchisee for any services they render in connection with the relocation. Furthermore, Browns Chicken can require the franchisee to upgrade the relocated store to meet the current image, standards, and specifications for new Browns Chicken stores.
The franchisee is also responsible for removing all signs, fixtures, and materials displaying Browns Chicken's marks from the former premises and for making any necessary alterations to distinguish the former store from its previous appearance and from other Browns Chicken locations. Failure to properly de-identify the former store can result in Browns Chicken revoking permission for the relocation and declaring a default under the Franchise Agreement.
If the franchisee loses possession of the store before the agreement expires, they must diligently search for a new location and reopen as soon as commercially practicable. Failure to do so can result in the franchisee being liable to Browns Chicken for lost royalties and other damages for the remainder of the franchise term. This is a fairly standard clause in franchise agreements, as the franchisor wants to ensure continued operation and brand presence.