What is the Browns Chicken franchisee acknowledging about the Illinois Video Gaming Act?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
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.
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.
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.
Franchisee shall furnish Franchisor copies of the State License and Municipal License or Permit within two (2) days of issuance or renewal.
Franchisee agrees that its revenues from Video Gaming shall be considered to be "Gross Sales" as that term is defined in Section 19.B. of the Franchise Agreement.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the franchisee acknowledges several key aspects of the Illinois Video Gaming Act. Specifically, the franchisee recognizes that video gaming is regulated by the Illinois Video Gaming Act (230 ILCS 40/1, et seq.) and is under the supervision of the Illinois Gaming Board, as authorized by Section 78 of the Act. This acknowledgment confirms the franchisee's understanding that video gaming operations are subject to state laws and regulatory oversight.
Furthermore, the Browns Chicken franchisee acknowledges that their store is considered a "Licensed Establishment" as defined by Section 25(e) of the Act. This means the franchisee must comply with all requirements imposed on Licensed Establishments under the Act and the Gaming Board's rules and policies. The franchisee also agrees that they are responsible for securing their own legal counsel for matters related to video gaming activities and are not relying on legal advice from Browns Chicken in this area. This highlights the franchisee's responsibility to ensure full compliance with the Act and related regulations.
Additionally, the franchisee acknowledges that under Section 55 of the Act, they must possess a valid liquor license to be licensed as a Licensed Establishment. They are obligated to maintain this liquor license in good standing and provide copies to Browns Chicken. The franchisee must also obtain a license as a Licensed Establishment from the Board, as required by Section 45 of the Act, and renew it annually or as otherwise required. If applicable, the franchisee must also obtain a Municipal License or Permit from the local municipality to offer video gaming and provide copies of these licenses to Browns Chicken within two days of issuance or renewal. Finally, the franchisee agrees that revenues from video gaming will be considered part of "Gross Sales" as defined in the Franchise Agreement.
These acknowledgments collectively demonstrate that the Browns Chicken franchisee is aware of the legal and regulatory framework governing video gaming in Illinois, their obligations as a Licensed Establishment, and the need to maintain proper licensing and compliance. This also clarifies that the franchisee is responsible for their own legal guidance regarding video gaming and that video gaming revenues are included in gross sales calculations for the franchise.