What must a Browns Chicken franchisee do if an electronic bank draft is dishonored?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
fee and Advertising Fund contribution, based on the average sales, plus ten percent (10%) for the last ten (10) reported weeks.
- (3) Franchisee may not make any change in its banking relationships, including any change in the account number of its general operating account, or any change in banks, without Brown's prior written approval.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, if an electronic bank draft is declined, dishonored, or refused due to insufficient funds, the franchisee must take specific actions. First, the franchisee is required to pay Browns Chicken a processing fee of $50.00. This fee is intended to cover the administrative costs associated with the failed transaction.
In addition to the processing fee, the franchisee must immediately address the reason the electronic bank draft was dishonored. This could involve depositing sufficient funds into the account or resolving any other issues that led to the rejection of the draft.
Finally, the franchisee is obligated to notify Browns Chicken once the issue has been resolved and provide assurance that the electronic bank draft will be honored. This communication is crucial to ensure Browns Chicken is aware that the payment will be successfully processed.