What is the exception to the notice period Browns Chicken provides before terminating the Video Gaming Rider?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisee violates any provision of Rider G or any provision of this Franchise Agreement, Franchisor shall have the right to terminate Rider G. Franchisor shall give Franchisee ten (10) days prior notice of termination of Rider G, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event Franchisor may terminate Rider G immediately effective upon revocation of Franchisee's State License.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken typically provides a ten-day notice before terminating the Video Gaming Rider G. However, there is an exception to this rule. Browns Chicken can terminate Rider G immediately if the franchisee's license as a Licensed Establishment is revoked.
This means that if a Browns Chicken franchisee loses their license to operate video gaming terminals, Browns Chicken does not have to provide any advance notice before terminating the Video Gaming Rider. The termination is effective immediately upon the revocation of the franchisee's state license.
This provision protects Browns Chicken from potential liabilities or damages that could arise from a franchisee continuing to operate video gaming terminals without a valid license. It also ensures compliance with the Illinois Video Gaming Act, which regulates video gaming activities. Prospective franchisees should understand that maintaining their Licensed Establishment status is critical to their ability to continue offering video gaming at their Browns Chicken location.