What is the Browns Chicken franchisee acknowledging regarding Video Gaming and the Illinois Gaming Board?
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, franchisees acknowledge that video gaming is regulated by the Illinois Video Gaming Act and supervised by the Illinois Gaming Board. Specifically, the franchisee acknowledges that their store is considered a "Licensed Establishment" and they must comply with all requirements imposed on such establishments under the Act and the Board's rules and policies. Browns Chicken franchisees also agree that they are responsible for retaining their own legal counsel regarding video gaming activities and are not relying on the franchisor for legal, business, or operational advice related to video gaming.
Furthermore, the Browns Chicken franchisee acknowledges that they must have a valid liquor license to be licensed as a Licensed Establishment, as mandated by Section 55 of the Act. They are required to maintain this liquor license in good standing and provide copies to Browns Chicken. The franchisee must also obtain a license from the Board as a Licensed Establishment, renewing it annually or as required by the Act, and obtain any necessary Municipal Licenses or Permits from the local municipality. Copies of these licenses and permits must be furnished to Browns Chicken within two days of issuance or renewal.
Finally, the Browns Chicken franchisee acknowledges that revenues from video gaming are considered part of "Gross Sales" as defined in the Franchise Agreement. This has implications for royalty payments and other financial obligations to the franchisor. Additionally, the franchisee acknowledges restrictions set forth in Sections 35(b)(2) and 55 of the Act, and agrees to construct a separate Gaming Area within their store, separated by a physical barrier, in compliance with Section 58 of the Act, restricting access to those 21 years and older, as mandated by Sections 40 and 58 of the Act. They must also comply with Section 58 of the Act regarding the presence of an employee over 21 years of age in the Gaming Area.