What is Exhibit E in the Browns Chicken FDD?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached are copies of the following documents you will sign:
Exhibit E. Preliminary Agreement Exhibit F: Franchise Agreement Rider A Territory Rider B Collateral Assignment of Lease Rider C Bank Draft Form Rider D Security Agreement and Financing Statement Rider E Guaranty and Assumption of Obligations under Franchise
Agreement
Rider F Authorization to Accountant Rider G Video Gaming
Exhibit G: Sublease and Guaranty and Assumption of Obligations under Sublease
Exhibit I: Franchisee Disclosure Questionnaire
Exhibit J: State Addendum (if applicable)
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Exhibit E is the Preliminary Agreement. Item 22 of the FDD lists the contracts attached, which include Exhibit E, Preliminary Agreement; Exhibit F, Franchise Agreement; and several riders and other agreements.
The Preliminary Agreement is a document that prospective Browns Chicken franchisees will sign as part of the franchise process. This agreement likely outlines the initial understandings and intentions between Browns Chicken and the franchisee before the final franchise agreement is executed. It may cover topics such as the franchisee's interest in obtaining a franchise, the location of the potential franchise, and any initial deposits or fees paid.
As a standard practice in franchising, the Preliminary Agreement allows both Browns Chicken and the potential franchisee to assess their compatibility and commitment before entering into a legally binding franchise agreement. It is important for prospective franchisees to carefully review this agreement with legal counsel to fully understand their rights and obligations before signing.
In addition to the Preliminary Agreement, Browns Chicken requires franchisees to sign several other documents, including a Franchise Agreement, various riders related to territory and collateral assignments, a bank draft form, a security agreement, a guaranty and assumption of obligations, authorization to accountant, video gaming, a sublease and guaranty, a Franchisee Disclosure Questionnaire, and a state addendum if applicable.