Does Brown's Chicken assume any liability or obligation to a franchisee or local co-operative regarding the co-operative's maintenance, direction, or administration?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) Local Cooperative Advertising. Franchisee shall join any local advertising co-operative which has been or may be formed consisting of franchisees and/or Brownowned or Affiliate-owned Stores in his area. Brown assumes no direct or indirect liability or obligation to Franchisee or to any local co-operative with respect to the maintenance, direction, or administration of the co-operative, including without limitation, any failure by any franchisees to make any contributions to the co-operative.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken assumes no direct or indirect liability or obligation to a franchisee or any local cooperative regarding the maintenance, direction, or administration of the cooperative. This includes any failure by franchisees to make contributions to the cooperative.
This means that as a Browns Chicken franchisee, you are required to join any local advertising cooperative in your area, which may consist of other franchisees or Browns Chicken-owned stores. However, Browns Chicken is not responsible for how the cooperative is run or managed. This also means Browns Chicken is not liable if other franchisees fail to contribute to the cooperative.
This arrangement places the responsibility for the cooperative's success and financial stability on the franchisees themselves. It is important for prospective franchisees to understand that Browns Chicken will not step in to resolve disputes or financial shortfalls within the cooperative. Franchisees should carefully consider the potential risks and benefits of participating in a local advertising cooperative before investing in a Browns Chicken franchise.