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What is the consequence if a Browns Chicken franchisee violates the restriction on Video Gaming hours?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event Franchisee violates any provision of the Act or of this Rider G, or of the Franchise Agreement, Franchisor shall have the right to terminate this Rider G.

Franchisor shall give Franchisee ten (10) days prior notice of termination of this Rider G, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event Franchisor may terminate this Rider G immediately effective upon revocation of Franchisee's State License.

If Franchisor terminates this Rider G, all video gaming terminals and other equipment shall be removed promptly in accordance with the terms of the Use Agreement, and Franchisee shall be prohibited from operating any Video Gaming activities at Franchisee's Store.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to the 2025 Browns Chicken Franchise Disclosure Document, if a franchisee violates any provision of Rider G, which includes restrictions on video gaming hours, Browns Chicken has the right to terminate Rider G. Browns Chicken will provide a ten (10) day notice of termination, unless the violation involves the revocation of the franchisee's license as a Licensed Establishment, in which case termination can be immediate upon revocation of the State License.

If Browns Chicken terminates Rider G, the franchisee must promptly remove all video gaming terminals and related equipment according to the Use Agreement. The franchisee will then be prohibited from operating any video gaming activities at their Browns Chicken store.

This policy ensures Browns Chicken franchisees adhere to the Illinois Video Gaming Act and the terms outlined in Rider G. It also protects Browns Chicken's brand integrity and compliance with state regulations. Prospective franchisees should carefully review Rider G and the Illinois Video Gaming Act to understand their obligations and the potential consequences of non-compliance.

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.