factual

What is the Browns Chicken franchisee required to do in order to offer Video Gaming?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Franchisee shall construct a separate area ("Gaming Area"), separated by an appropriate physical barrier, within Franchisee's Store where the Video Gaming Terminals are located, in compliance with Section 58 of the Act.

Franchisee shall restrict access to the Gaming Area only to persons who are age twenty-one (21) years and older, as mandated by Sections 40 and 58 of the Act.

Franchisee shall comply with the requirement in Section 58 of the Act that the owner, manager or employee of the Licensed Establishment who is over 21 years of age shall be present during all hours of operation.

The Video Gaming Terminals or the entrance to the Gaming Area must be within the view of at least one owner, manager or employee who is over 21 years of age.

Franchisee shall comply with the requirement in Section 60(d) of the Act to maintain an adequate video gaming fund, in the amount determined by the Board.

Franchisee shall report to its insurance carrier the presence of Video Gaming at Franchisee's Store, and shall obtain and maintain liability insurance in an amount that Brown determines is reasonably necessary.

Franchisee shall take all steps required to maintain Franchisee's Store as a Licensed Establishment.

Franchisee shall operate all the Video Gaming Terminals during all the legal hours of operation as described in Paragraph 13 above.

Franchisee agrees that Franchisee is responsible for retaining its own legal counsel in connection with the Video Gaming activities at Franchisee's Store, and Franchisee is not relying on the legal, business, or operational advice or guidance from Franchisor in connection with Video Gaming.

Franchisee shall furnish Franchisor copies of the State License and Municipal License or Permit within two (2) days of issuance or renewal.

Franchisee is not acquiring any territorial rights in connection with its Video Gaming activities, as it relates to the consent by Franchisor to any other Brown's franchisee to offer Video Gaming, or to Video Gaming that may be offered by any owner or officer of Brown in any business owned or operated by such owner or officer.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to the 2025 Browns Chicken Franchise Disclosure Document, if Browns Chicken requires a franchisee to offer video gaming in their store, the parties will execute Rider G, the Video Gaming Rider, to the Franchise Agreement. The franchisee must have a license to sell alcoholic beverages in order to obtain and maintain a video gaming license and will be subject to other restrictions, as set forth in Rider G. The franchisee must also construct a separate Gaming Area, separated by an appropriate physical barrier, within Franchisee's Store where the Video Gaming Terminals are located, in compliance with Section 58 of the Act.

The franchisee must restrict access to the Gaming Area only to persons who are age twenty-one (21) years and older, as mandated by Sections 40 and 58 of the Act. The franchisee must comply with the requirement in Section 58 of the Act that the owner, manager or employee of the Licensed Establishment who is over 21 years of age shall be present during all hours of operation. The Video Gaming Terminals or the entrance to the Gaming Area must be within the view of at least one owner, manager or employee who is over 21 years of age.

The Browns Chicken franchisee must comply with the requirement in Section 60(d) of the Act to maintain an adequate video gaming fund, in the amount determined by the Board. The franchisee must report to its insurance carrier the presence of Video Gaming at Franchisee's Store, and must obtain and maintain liability insurance in an amount that Browns determines is reasonably necessary. The franchisee must take all steps required to maintain Franchisee's Store as a Licensed Establishment and operate all the Video Gaming Terminals during all the legal hours of operation.

The franchisee is responsible for retaining its own legal counsel in connection with the Video Gaming activities at Franchisee's Store, and Franchisee is not relying on the legal, business, or operational advice or guidance from Franchisor in connection with Video Gaming. The franchisee must furnish Browns Chicken copies of the State License and Municipal License or Permit within two (2) days of issuance or renewal. The franchisee is not acquiring any territorial rights in connection with its Video Gaming activities.

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.