What does the Browns Chicken franchise agreement say about the location and relocation of the store?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
6. LOCATION AND RELOCATION OF STORE.
- A. Location. The Franchise is granted for, and Franchisee may operate the Store only at, the location and the Premises herein identified or a substitute location and/or the Premises hereafter approved by Brown. Franchisee acknowledges that Franchisee has independently evaluated the location of the Store prior to the execution of this Franchise Agreement, including the demographic characteristics of the area in which the Store is located.
- B. Relocation. If Franchisee's lease for the Premises expires or terminates without fault of Franchisee, or if the Premises is damaged, condemned or otherwise rendered unusable, or if, in the judgment of Brown and Franchisee, there is a change in character of the location of the Store sufficiently detrimental to its business potential to warrant its relocation, Brown will grant permission for relocation of the Store to a location and premises approved by Brown, in its sole discretion. Any such relocation shall be at Franchisee's sole expense. Brown shall have the right to charge Franchisee for services Brown renders to Franchisee in connection with such relocation. Brown shall also have the right to require Franchisee to upgrade the relocated Store to conform to Brown's then current image, standards, and specifications for construction and equipment for all new BROWN's Stores.
- (1) In the event of a relocation of the Store, Franchisee shall promptly remove from the former Store premises any and all signs, fixtures, furniture, posters, furnishings, equipment, menus, advertising materials, stationery, supplies, forms and other articles which display any of the Marks and distinctive features or designs associated with the System. Any articles which display any of the Marks or any distinctive features or designs associated with the System which are not used by Franchisee at the new Store location shall be disposed of by Franchisee as directed by Brown following notice to Brown to the effect such articles will not be used at the new Store. Furthermore, Franchisee shall, at Franchisee's expense, immediately make such modifications or alterations as may be necessary to distinguish the former Store premises so clearly from its former appearance and from other BROWN's Stores so to prevent any possibility of confusion by the public (including, without limitation, removal of all distinctive physical
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the franchise is granted specifically for an approved location, and the franchisee can only operate at that location or a substitute location approved by Browns Chicken. The franchisee is responsible for independently evaluating the store location before signing the Franchise Agreement, including assessing the demographic characteristics of the area. This means that Browns Chicken retains control over the store's location and that the franchisee is expected to do their own due diligence on the site's suitability.
Regarding relocation, Browns Chicken may grant permission to relocate the store if the lease expires or terminates without fault of the franchisee, if the premises are damaged or condemned, or if Browns Chicken and the franchisee agree that there's a detrimental change in the location's business potential. The relocation is at the franchisee's sole expense, and Browns Chicken has the right to charge for services rendered in connection with the relocation. Furthermore, Browns Chicken can require the franchisee to upgrade the relocated store to meet the current image, standards, and specifications for new Browns Chicken stores. This indicates that relocation is possible under certain conditions, but the franchisee bears the financial burden and must adhere to Browns Chicken's requirements.
In the event of relocation, the franchisee must promptly remove all signs, fixtures, and materials displaying Browns Chicken's marks from the former premises. The franchisee must also modify the former store to clearly distinguish it from its previous appearance and other Browns Chicken stores to prevent public confusion. Any articles displaying Browns Chicken's marks that are not used at the new location must be disposed of as directed by Browns Chicken. If the franchisee fails to make these alterations, Browns Chicken has the right to enter the former store and make the necessary changes without liability for trespass. This highlights the importance of maintaining Browns Chicken's brand consistency and preventing any confusion after a store relocates.