conditional

Is the consent given by Browns Chicken for Video Gaming unconditional?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

n that may be brought against Franchisor arising out of the Video Gaming activities in Franchisee's Store.

    1. This Rider G is not assignable by Franchisee under any circumstances, even if Franchisee's Franchise Agreement is assigned. The reason for this provision is that Section 50(c) of the Act provides that no license issued under the Act is transferable or assignable.
    1. Franchisee shall take all steps required to maintain Franchisee's Store as a Licensed Establishment.
    1. So long as Franchisee's Store is a Licensed Establishment, Franchisee shall operate all the Video Gaming Terminals during all the legal hours of operation as described in Paragraph 13 above.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to the 2025 Browns Chicken Franchise Disclosure Document, the consent given by Browns Chicken for a franchisee to cease video gaming operations is conditional. Browns Chicken must provide written consent if a franchisee requests to stop or partially stop video gaming at their store. Browns Chicken maintains the right to mandate video gaming at a franchise location, requiring the franchisee to execute Rider G, the Video Gaming Rider, to the Franchise Agreement.

This stipulation implies that Browns Chicken retains control over the inclusion of video gaming as an offering at its franchise locations. A franchisee cannot unilaterally decide to discontinue video gaming without the franchisor's explicit written approval. This condition is significant because it ensures uniformity and adherence to brand standards across all Browns Chicken franchises, particularly concerning revenue-generating activities like video gaming.

For a prospective Browns Chicken franchisee, this means that while video gaming can be a potentially lucrative addition to their business, it is not entirely within their control. The franchisee must be prepared to implement and maintain video gaming if Browns Chicken deems it necessary. Furthermore, the franchisee must obtain written consent from Browns Chicken if they wish to cease or modify their video gaming operations, highlighting the importance of maintaining open communication and a collaborative relationship with the franchisor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.