What is the cure period for defaults related to health and safety for Browns Chicken franchisees in Illinois?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| (a) Length of the franchise term | 2A | Approximately 15 years, subject to earlier termination as provided in the Franchise Agreement. |
| (b) Renewal or extension of the term | 2B | If you are in compliance with the Franchise Agreement and give 6 months’ notice of your intent to renew prior to the end of the term, Brown will renew the franchise for a 1 year (minimum) or 5 year term (maximum). |
| Provision | Section in Agreement | Summary |
| (c) Requirements for Franchisee to renew or extend | 2B | Compliance with Franchise Agreement and any other agreements, including leases; remodel and update; sign new franchise agreement; pay $5,000 renewal fee. The renewal agreement may contain materially different terms and conditions than your original contract, but the royalty fee will not be greater than the royalty fee that we then impose on similarly-situated renewing franchisees |
| (d) Termination by Franchisee | 20A | Only if you are in compliance with the Franchise Agreement and Brown fails to cure its own material breach within 30 days of written notice. |
| (e) Termination by Franchisor | None | No specific provision. |
| without cause | ||
| (f) Termination by Franchisor with cause | 20B and 21D | Brown can terminate the Franchise if you default under any agreement; upon termination of the Franchise, any sublease from Brown will terminate, and you may be required to assign your lease to Brown. |
| (g) "Cause" defined – curable defaults | 20B | Upon notice as provided in the Franchise Agreement, the following defaults may be curable: failure to complete training, failure to secure a site or retain or develop it according to Brown's specifications, non-payment of fees (unless repeated), failure to operate the Store in compliance with Brown's standards. For Illinois franchisees, Brown must give you a reasonable time franchise to cure, which need not be more than 30 days. If the time frame is less than 30 days, the causes must be related to health and safety. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–38)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Illinois franchisees have a specific cure period for defaults. Browns Chicken must provide a reasonable time frame to correct the default. However, this cure period does not have to be more than 30 days. If the reason for default involves health and safety, the cure period can be less than 30 days.
This means that if a Browns Chicken franchisee in Illinois violates a term of the franchise agreement, they will be given a chance to fix the issue and avoid termination of the franchise agreement. The amount of time Browns Chicken gives to correct the issue depends on the nature of the default.
For defaults related to health and safety, Browns Chicken has the right to demand immediate action. This is because health and safety issues can have immediate and severe consequences for the business, its customers, and its employees. It is important to note that what constitutes a 'reasonable time' is subjective and could be a point of contention between Browns Chicken and the franchisee. Franchisees should seek legal counsel if they believe the cure period is unreasonable.