What constitutes 'abandonment' of a Browns Chicken store that would lead to termination?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(5) abandons, surrenders or transfers control of the operation of the Store or fails to continuously and actively operate the Store, unless precluded from doing so by damage to the Premises, war, civil disturbance, natural disaster, labor dispute or other event beyond Franchisee's reasonable control;
In the event Franchisee (i) abandons the Store, which for purposes of this Section is failing to open or operate the Store for more than three (3) consecutive days, or (ii) transfers an interest in the Store or the ownership of Franchisee or of the assets of Franchisee or the Store (or any interest therein) without fully complying with Paragraph 22.C. of this Agreement, whether or not Brown terminates this Agreement, Brown shall have the right to impose liquidated damages in the amount of Ten Thousand Dollars ($10,000.00). This remedy is in addition to Brown's other rights and remedies set forth in this Agreement. The liquidated damages are not a penalty or forfeiture, but are a reasonable measure of damages where the exact amount of actual damages would be difficult to ascertain.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, abandonment of the store, which can lead to termination of the franchise agreement, is defined as failing to open or operate the store for more than three consecutive days.
Browns Chicken also has the right to impose liquidated damages of $10,000 if a franchisee abandons the store. This is in addition to any other rights and remedies Browns Chicken has as set forth in the agreement. The FDD states that these liquidated damages are not a penalty or forfeiture, but are a reasonable measure of damages where the exact amount of actual damages would be difficult to ascertain.
Furthermore, Browns Chicken may terminate the Franchise Agreement if the franchisee abandons, surrenders, or transfers control of the store's operation, or fails to continuously and actively operate the store. An exception is made if the failure to operate is due to damage to the premises, war, civil disturbance, natural disaster, labor dispute, or other events beyond the franchisee's reasonable control.