Does the Browns Chicken franchise agreement allow a franchisee to use the Browns Chicken trademarks after the franchise agreement terminates or expires?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Brown is the owner of all Marks licensed to you, and your right to use the Marks is derived solely from the Franchise Agreement, and all usage and any goodwill established thereby will benefit Brown exclusively. You are prohibited, after the termination or expiration of the Franchise, from directly or indirectly in any manner identifying yourself or any store, business or premises as a BROWN'S Store, a former BROWN'S Store, a franchisee or other associate of Brown, and from directly or indirectly using any Mark in any manner or for any purpose.
Source: Item 13 — TRADEMARKS (FDD pages 33–34)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, franchisees are prohibited from using Browns Chicken's trademarks after the termination or expiration of the Franchise Agreement. This means that once the agreement ends, a former franchisee cannot identify themselves or their business as a Browns Chicken store or associate. They are barred from using any of Browns Chicken's trademarks for any purpose.
This restriction is standard practice in franchising. It protects the integrity and exclusivity of the Browns Chicken brand. If former franchisees were allowed to continue using the trademarks, it could create confusion among customers and dilute the brand's value. Browns Chicken maintains exclusive ownership of all Marks licensed to the franchisee, and the right to use the Marks is derived solely from the Franchise Agreement. All usage and any goodwill established will benefit Browns Chicken exclusively.
For a prospective franchisee, this underscores the importance of understanding the terms and duration of the Franchise Agreement. Upon termination or expiration, the franchisee must completely cease using all Browns Chicken branding. This includes signage, marketing materials, and any other representation that associates the business with Browns Chicken. Failure to comply could result in legal action by Browns Chicken to protect its trademarks.