Can Browns Chicken elect to give modifications to the franchise agreement greater applicability than just the jurisdiction where a provision was deemed unenforceable?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Such modifications to this Agreement shall be effective only in such jurisdiction, unless Brown elects to give them greater applicability, and shall be enforced as originally made and entered in all other jurisdictions.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken has the option to apply modifications to the franchise agreement beyond the specific jurisdiction where a provision was initially deemed unenforceable. This means that if a court in one state finds a certain clause to be invalid, Browns Chicken can choose to implement that change across all of its franchises, not just those within that state.
This clause provides Browns Chicken with flexibility in how it responds to legal challenges. Rather than dealing with a patchwork of different contract terms across different states, Browns Chicken can choose to create a uniform standard. This could simplify compliance and reduce administrative burdens for the franchisor.
For a prospective franchisee, this means that the terms of their franchise agreement could be altered based on legal decisions made in other jurisdictions. While this could potentially lead to changes that benefit the franchisee, it also carries the risk that changes could be implemented that are less favorable to them. It is important for franchisees to stay informed about legal developments affecting the Browns Chicken system, even those occurring outside of their own state, as these could lead to changes in their franchise agreement.