factual

What are some examples of Third-Party Delivery Services mentioned in the Browns Chicken franchise agreement?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

romulgated in writing by Brown. A "Third-Party Delivery Service" is a company or business through which customers purchase menu items from the Store, that delivers the menu items to the customers at a location other than the Store. Third-Party Delivery Services typically charge you a fee for this service, which may be automatically deducted from the funds that are collected from the customer prior to disbursement

  • of the funds by the Third-Party Delivery Service to you. Examples of Third-Party Delivery Services include, but are not limited to Grubhub, DoorDash, Uber Eats, ezCater, and Postmates.
  • 3/ Brown may, from time to time, acquire possession of a site for a Store and sell or lease the site to you. In that event, Brown may charge you a store development and set up fee up to $50,000.
  • 4/ Further, if Brown leases a site and subleases it to you, Brown reserves the right to charge you rent that is greater than the rental Brown pays, not to exceed 15%.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to the 2025 Browns Chicken Franchise Disclosure Document, a "Third-Party Delivery Service" is defined as a company that facilitates customer purchases of menu items from the store and delivers them to the customer's location. Browns Chicken franchisees are typically charged a fee for this service, which may be automatically deducted from the funds collected from the customer before the delivery service disburses the funds to the franchisee.

The franchise agreement provides examples of Third-Party Delivery Services, including Grubhub, DoorDash, Uber Eats, ezCater, and Postmates. Browns Chicken requires franchisees to offer customers the option of purchasing products through these Third-Party Delivery Services.

Furthermore, Browns Chicken mandates that franchisees apply and sign up to participate in any Third-Party Delivery Service platform as required by Browns Chicken. However, franchisees may only utilize Third-Party Delivery Services through a group account designated, established, and controlled by Browns Chicken. This stipulation ensures that Browns Chicken maintains oversight and control over the delivery process and the associated customer interactions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.