What must a Browns Chicken franchisee do to effect electronic transfers to the advertising fund?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires you to pay to the Advertising Fund 4% of your Gross Sales. You must pay Brown the Advertising Fund by electronic transfer or automatic bank draft. You must establish an account at a bank acceptable to Brown, execute all documents required by said bank and Brown's bank to effect such transfers, and pay all fees and charges assessed by said banks for such transfers.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–30)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees are required to contribute 4% of their gross sales to the Advertising Fund. To facilitate these payments, Browns Chicken mandates that franchisees use electronic transfers or automatic bank drafts.
To comply with this requirement, a franchisee must establish an account at a bank that Browns Chicken approves. Furthermore, the franchisee is obligated to complete all necessary paperwork required by both the chosen bank and Browns Chicken's bank to enable these electronic transfers.
Finally, the franchisee is responsible for covering all fees and charges levied by the banks for processing these transfers. This ensures that the Advertising Fund receives the contributions in a timely and consistent manner, which Browns Chicken uses for advertising and promotional activities.