What construction-related costs must a Browns Chicken franchisee furnish to Brown upon completion of construction?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to do, or cause to be done, the following:
- (1) Prepare suitable architectural plans and specifications and a site survey for the Store at the Premises, in accordance with Brown's requirements for dimensions, exterior design, materials, parking area, interior layout, equipment, fixtures, furniture, and signs and decorating of a BROWN'S Store and conforming to all applicable ordinances, building, and zoning codes, permit requirements, and lease requirements and restrictions, which plans and specifications must be submitted to and approved in advance by Brown;
- (2) Obtain all required zoning changes and all required health, sanitation, building, utility, sign, and business permits and licenses, and any other required permits and licenses;
- (3) Purchase or lease and install all equipment, fixtures, furniture, and signs required for the Store; and
- (4) Construct all required improvements to and decorate the Premises in compliance with plans and specifications therefor approved by Brown and with all applicable laws.
- (5) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating and installation services; and
- (6) upon completion of construction, furnish Brown final costs for the construction, equipment, build-out, deposits, and total development of the Store.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, a franchisee must furnish Brown with final costs for several construction-related aspects upon completion of the store's construction. These costs encompass the construction itself, the equipment installed, the build-out expenses, any deposits made, and the total development costs of the Browns Chicken store.
This requirement ensures that Browns Chicken has a comprehensive understanding of the franchisee's investment in establishing the store. This information can be used by Browns Chicken for various purposes, such as assessing the financial performance of the store, providing benchmarks for future franchisees, and ensuring consistency in the brand's image and standards.
For a prospective Browns Chicken franchisee, this means maintaining detailed records of all expenses incurred during the construction and development phase. Accurate tracking of these costs is essential for fulfilling the obligation to provide final cost figures to Brown. Furthermore, understanding the types of costs that need to be reported can aid in budgeting and financial planning during the initial setup of the franchise.
It is important for potential franchisees to clarify with Browns Chicken the specific format and documentation required for reporting these costs. Understanding the reporting requirements upfront can streamline the process and avoid potential delays or disputes later on.