What must the Browns Chicken franchisee acknowledge regarding Video Gaming regulations?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
the terms and conditions of this Rider G. | | | In consideration of the mutual and several covenants | | | set forth herein, and for other good and | | | valuable consideration, the receipt and sufficiency of which are hereby acknowledge, the parties | | | hereto agree as follows: | | 1. | Franchisor hereby consents to Franchisee's offering Video Gaming, as that term is | | | defined on attached Schedule "A," at Franchisee's Store, on the terms and conditions of | | | this Rider G. |
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- Franchisee acknowledges that Video Gaming is regulated by the Illinois Video Gaming Act, 230 ILCS 40/1, et seq. ("the Act") and is supervised by the Illinois Gaming Board (the "Board"), as authorized by Section 78 of the Act.
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- Franchisee acknowledges and agrees that Franchisee's Store is considered a "Licensed Establishment" within the meaning of the Act (Section 25(e)), and that Franchisee must comply with all the requirements imposed on Licensed Establishments under the Act and the Board's Adopted Rules and Policies. Franchisee agrees that Franchisee is responsible for retaining its own legal counsel in connection with the Video Gaming activities at Franchisee's Store, and Franchisee is not relying on the legal, business, or operational advice or guidance from Franchisor in connection with Video Gaming.
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- Franchisee acknowledges and understands that under Section 55 of the Act, Franchisee must have a valid liquor license in order to be licensed as a Licensed Establishment. Franchisee shall maintain its liquor license in good standing and shall furnish Franchisor a copy of its liquor license and all renewals.
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- Franchisee shall obtain a license ("State License") as a Licensed Establishment from the Board, as required by Section 45 of the Act, and shall obtain renewals of its State License annually or at such other intervals as required by the Act.
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- Franchisee, if applicable, shall obtain a license or permit ("Municipal License or Permit") from the municipality in which Franchisee's Store is located, to offer Video Gaming, and shall obtain renewals of its Municipal License or Permit annually or at such other intervals as required by said municipality.
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- Franchisee shall furnish Franchisor copies of the State License and Municipal License or Permit within two (2) days of issuance or renewal.
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- Franchisee agrees that its revenues from Video Gaming shall be considered to be "Gross Sales" as that term is defined in Section 19.B.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if the franchisee's store offers video gaming, the franchisee must acknowledge several key aspects of the Illinois Video Gaming Act and its implications. Specifically, the franchisee must understand that video gaming is regulated by the Illinois Video Gaming Act, 230 ILCS 40/1, et seq., and supervised by the Illinois Gaming Board, as authorized by Section 78 of the Act. The franchisee's store is considered a "Licensed Establishment" under Section 25(e) of the Act, and they must comply with all requirements imposed on such establishments.
Furthermore, the Browns Chicken franchisee acknowledges that they are responsible for retaining their own legal counsel for video gaming activities and are not relying on the franchisor's legal, business, or operational advice in this area. They must also have a valid liquor license to be licensed as a Licensed Establishment, as required by Section 55 of the Act, and must maintain this license in good standing. The franchisee is also responsible for obtaining and renewing a State License from the Board, as per Section 45 of the Act, and a Municipal License or Permit from the local municipality.
These acknowledgements highlight the franchisee's responsibility for understanding and complying with all applicable laws and regulations related to video gaming. This includes securing necessary licenses, maintaining compliance, and seeking independent legal counsel. Failure to comply can result in penalties, including the termination of the Video Gaming Rider to the Franchise Agreement. Browns Chicken also requires that the franchisee enter into a "Use Agreement" with a Terminal Operator, and provide a copy of this agreement to Browns Chicken within two days of its execution.