What documents must a Browns Chicken franchisee execute to renew the franchise agreement?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee fails to give Brown notice as provided in this Paragraph of its intent to renew the franchise, Brown need not renew the Franchise Agreement.
(3) Renewal Agreements/Releases.
To renew the Franchise: (i) Brown and Franchisee shall execute the form of standard franchise agreement and any ancillary agreements then customarily used by Brown (with appropriate modifications to reflect the fact that the Agreement relates to the renewal of the Franchise, including the length of the renewal term), which agreements may contain substantially different provisions from this Agreement, including higher or lower royalty fees and Advertising Fund contributions; (ii) Franchisee and its owners shall execute general releases, in a form satisfactory to Brown, of any and all claims against Brown and its officers, directors, employees, and agents; and (iii) Franchisee shall pay a renewal fee of Five Thousand Dollars ($5,000). Failure by
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, to renew the franchise, the franchisee must execute several documents. Browns Chicken and the franchisee must execute the form of standard franchise agreement and any ancillary agreements then customarily used by Browns Chicken. These agreements may contain substantially different provisions from the original agreement, including potentially higher or lower royalty fees and advertising fund contributions.
Additionally, the franchisee and its owners must execute general releases, in a form satisfactory to Browns Chicken, of any and all claims against Browns Chicken and its officers, directors, employees, and agents. These releases ensure that Browns Chicken is protected from any potential future legal claims arising from the franchisee's operation.
Failure by the franchisee and its owner to sign such agreements and releases within thirty (30) days after their delivery to the franchisee will be deemed an election by the franchisee not to renew the franchise. The franchisee must also pay a renewal fee of $5,000 to finalize the renewal process.