factual

Where can a Browns Chicken franchisee find the restrictions related to video gaming?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

re-opening the Restaurant;

(4) To refrain from talking to the media in the event of an outbreak of a food borne illness, and to acknowledge our right to control the information that is shared through the media relating to these circumstances.

Q. Video Gaming.

Brown may require Franchisee to offer video gaming in Franchisee's Store. If Brown requires Franchisee to offer video gaming in Franchisee's Store, the parties will execute Rider G, the Video Gaming Rider, to this Franchise Agreement, the Video Gaming Rider. Franchisee must have a license to sell alcoholic beverages in order to obtain and maintain a video gaming license. Franchisee will be subject to other restrictions, as set forth in Rider G.

In the event Franchisee violates any provision of Rider G or any provision of this Franchise Agreement, Franchisor shall have the right to terminate Rider G. Franchisor shall give Franchisee ten (10) days prior notice of termination of Rider G, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event Franchisor may terminate Rider G immediately effective upon revocation of Franchisee's State License. Franchisee will require that any agreement with a terminal operator regarding video gaming in Franchisee's Store (a "Use Agreement") contain a provision stating that such Use Agreement is subject to termination on ten (10) days prior notice in the event that Franchisee exercises the termination right described herein, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event the Use Agreement will be subject to immediate termination. If Franchisor terminates Rider G, all video gaming terminals and other equipment shall be removed promptly in accordance with the terms of the Use Agreement, and Franchisee shall be prohibited from operating any Video Gaming activities at Franchisee's Store.

R. Best Efforts

Franchisee shall throughout the term of this Agreement faithfully, honestly, and diligently perform his obligations hereunder. Franchisee shall continuously exert his best efforts to promote and enhance the business of the Store and the goodwill of the Marks.

11. ADVERTISING AND PROMOTION.

A. By Company.

Recognizing the value of advertising to the goodwill and public image of BROWN'S Stores, Brown agrees to maintain and administer an advertising fund (the "Advertising Fund") for such advertising as Brown may deem necessary or appropriate, in its sole discretion. Brown shall, from time to time, formulate, develop, produce and conduct regional advertising and promotion programs in such form and media as it determines, in its sole discretion, to be most effective.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to Browns Chicken's 2025 Franchise Disclosure Document, the restrictions related to video gaming can be found in Rider G, the Video Gaming Rider, to the Franchise Agreement. Specifically, Section 35(b)(2) and 55 of the Act, Section 58 of the Act, and Sections 40 and 58 of the Act are referenced as containing restrictions.

A Browns Chicken franchisee must construct a separate Gaming Area within their store, separated by a physical barrier, in compliance with Section 58 of the Act. Access to this area is restricted to individuals 21 years of age and older, as mandated by Sections 40 and 58 of the Act.

The franchisee must also comply with Section 58 of the Act, ensuring that an owner, manager, or employee over 21 is present during all hours of operation and has a view of the Video Gaming Terminals or the entrance to the Gaming Area. Additionally, the franchisee is required to maintain an adequate video gaming fund as determined by the Board, according to Section 60(d) of the Act.

Violation of any provision of the Act, Rider G, or the Franchise Agreement can lead to termination of Rider G, with a ten-day notice, unless the franchisee's license as a Licensed Establishment is revoked, in which case termination is immediate. If Rider G is terminated, all video gaming equipment must be removed, and the franchisee is prohibited from operating any Video Gaming activities at the store. The franchisee does not acquire any territorial rights related to video gaming.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.