What is the condition for the Use Agreement to be subject to immediate termination for a Browns Chicken franchisee?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will require that any agreement with a terminal operator regarding video gaming in Franchisee's Store (a "Use Agreement") contain a provision stating that such Use Agreement is subject to termination on ten (10) days prior notice in the event that Franchisee exercises the termination right described herein, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event the Use Agreement will be subject to immediate termination.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, a Use Agreement, pertaining to video gaming terminals in a franchisee's store, is subject to immediate termination if the franchisee's license as a Licensed Establishment is revoked.
Specifically, the Use Agreement between the Browns Chicken franchisee and a terminal operator must contain a provision that allows for termination with ten days' notice if the franchisee violates Rider G or the Franchise Agreement. However, an exception exists: if the franchisee's license as a Licensed Establishment is revoked, the Use Agreement can be terminated immediately.
This condition protects Browns Chicken by ensuring that video gaming activities cease immediately if a franchisee loses their license, preventing any potential damage to the brand's reputation or legal issues arising from an unlicensed operation. Prospective franchisees should understand the importance of maintaining their licenses and adhering to all relevant regulations to avoid the immediate termination of their Use Agreement and the cessation of video gaming activities at their Browns Chicken location.