Is a Browns Chicken franchisee required to offer gift cards for sale?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
N. Gift Cards. Franchisee agrees:
- (1) to offer for sale BROWN'S gift cards, which must be in the form and version of Gift Cards designated and approved in writing by Brown ("Official Gift Card"), as it may be amended from time to time;
- (2) not to offer for sale or give away any form of Gift Card other than the Official Gift Card;
- (3) not to create Franchisee's own Gift Card;
- (4) to accept and honor the Official Gift Card in exchange for product when presented for redemption at Franchisee's Store;
- (5) to obtain and maintain the necessary terminal and/or other equipment and software necessary to process the authorized Gift Cards; and
- (6) to comply with any policy promulgated by Brown regarding changes to the form and use of Gift Cards, including transition periods for the phasing in of modifications to the Official Gift Card.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees are required to offer gift cards for sale. Specifically, Browns Chicken franchisees must offer for sale Browns Chicken gift cards, and these gift cards must be the form and version designated and approved in writing by Browns Chicken. These are referred to as "Official Gift Cards," and this form may be amended from time to time.
Browns Chicken franchisees are not allowed to offer for sale or give away any form of gift card other than the Official Gift Card. Franchisees are also prohibited from creating their own gift cards.
Furthermore, Browns Chicken franchisees must accept and honor the Official Gift Card in exchange for product when presented for redemption at the franchisee's store. Franchisees are also obligated to obtain and maintain the necessary terminal and/or other equipment and software needed to process the authorized Gift Cards. Finally, franchisees must comply with any policy that Browns Chicken promulgates regarding changes to the form and use of Gift Cards, including transition periods for phasing in modifications to the Official Gift Card.