What must a Browns Chicken franchisee do with assignable licenses or permits when Browns Chicken purchases the store?

The 2025 Browns Chicken FDD states that if a franchisee fails to secure any license or permit required for the operation of the store, Browns Chicken has the option to obtain such license or permit on behalf of the franchisee. In this case, the franchisee must fully cooperate with Browns Chicken in its efforts to obtain the license or permit and pay Browns Chicken, on demand, all costs and charges incurred by Browns Chicken.

This means that if a Browns Chicken franchisee is unable to obtain the necessary licenses or permits to operate their store, Browns Chicken can step in and obtain them on the franchisee's behalf. However, the franchisee is responsible for all costs and charges that Browns Chicken incurs in the process. This could include application fees, legal fees, or any other expenses related to obtaining the licenses or permits.

This clause protects Browns Chicken by ensuring that the store can operate even if the franchisee is unable to obtain the necessary licenses or permits. It also places the financial burden on the franchisee, which incentivizes them to obtain the licenses and permits themselves in a timely manner. Prospective franchisees should understand that failing to secure necessary permits can lead to Browns Chicken intervening and billing them for all associated costs.