What is the daily penalty fee for Browns Chicken franchisees who are in default of their Franchise Agreement?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Brown pays, not to exceed 15%.
- 5/ You must pay a $100 per day penalty if you are in default of your Franchise Agreement, including failure to submit reports or pay fees when due, non-compliance with operating standards as set forth in the Operating Manuals, or other defaults. This penalty does not limit or serve as a waiver of Brown's other rights and remedie
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees may be subject to a penalty of $100 per day if they are in default of their Franchise Agreement. This includes failing to submit reports or pay fees when due, not complying with operating standards outlined in the Operating Manuals, or other defaults. This penalty is payable upon demand.
It's important to note that this daily penalty does not limit or waive any other rights and remedies that Browns Chicken has under the Franchise Agreement. This means that in addition to the $100 daily penalty, Browns Chicken could pursue other legal or contractual remedies available to them.
Penalty fees for non-compliance are relatively common in franchising. Franchisees should carefully review the Browns Chicken Franchise Agreement to fully understand what constitutes a default and the potential consequences, including all applicable fees and penalties. Understanding these obligations is crucial for maintaining a good standing with the franchisor and avoiding these types of penalties.