Can a Browns Chicken franchisee make any agreements, representations or warranties in the name of Brown?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Brown nor Franchisee shall make any agreements, representations or warranties in the name of or in behalf of the other (except such agreements as Brown shall make on behalf of Franchisee in developing the Store, if any), and neither Brown nor Franchisee shall be obligated by any agreements, representations or warranties made by the other, nor shall Brown be obligated for any damages to any person or property directly or indirectly arising out of the operation of the Store or Franchisee's business conducted hereunder, whether caused by Franchisee's negligence or willful action or failure to act. Brown shall have no liability for any sales, use, excise, income, property or other taxes levied upon Franchisee, the Store or its assets, or in connection with the sales made or business conducted by the Store.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that neither Browns Chicken nor the franchisee can make agreements, representations, or warranties in the name of the other party. An exception exists for agreements that Browns Chicken makes on behalf of the franchisee while developing the store.
This clause establishes that Browns Chicken franchisees are independent contractors and do not have the authority to act on behalf of the franchisor unless specifically authorized. This protects Browns Chicken from potential liabilities arising from the franchisee's actions and ensures that franchisees cannot bind the franchisor to obligations without prior consent.
Prospective franchisees should understand that they are responsible for their own business operations and cannot rely on Browns Chicken to cover their obligations. This independence also means franchisees are directly liable for damages arising from their store's operation, reinforcing the importance of proper insurance and adherence to Browns Chicken's standards and procedures. Franchisees must conspicuously identify themselves as the owners of the store operating under a franchise granted by Browns Chicken.