Is a Browns Chicken franchisee required to release all claims against Brown and its representatives as a condition of renewal?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee fails to give Brown notice as provided in this Paragraph of its intent to renew the franchise, Brown need not renew the Franchise Agreement.
(3) Renewal Agreements/Releases.
To renew the Franchise: (i) Brown and Franchisee shall execute the form of standard franchise agreement and any ancillary agreements then customarily used by Brown (with appropriate modifications to reflect the fact that the Agreement relates to the renewal of the Franchise, including the length of the renewal term), which agreements may contain substantially different provisions from this Agreement, including higher or lower royalty fees and Advertising Fund contributions; (ii) Franchisee and its owners shall execute general releases, in a form satisfactory to Brown, of any and all claims against Brown and its officers, directors, employees, and agents; and (iii) Franchisee shall pay a renewal fee of Five Thousand Dollars ($5,000). Failure by
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, a franchisee is required to execute a general release of claims against Browns Chicken and its representatives as a condition of renewing their franchise agreement. Specifically, to renew the franchise, the franchisee and their owners must execute general releases in a form satisfactory to Browns Chicken, which covers any and all claims against Browns Chicken and its officers, directors, employees, and agents.
This requirement is standard practice in franchising, as it resolves any potential disputes between the franchisee and franchisor before the renewal term begins. This ensures a clean slate for the renewed relationship. The franchisee must also execute the form of standard franchise agreement and any ancillary agreements then customarily used by Browns Chicken, which may contain substantially different provisions from the original agreement, including higher or lower royalty fees and Advertising Fund contributions.
In addition to signing the releases and new agreements, the franchisee must also pay a renewal fee of $5,000. Failure by the franchisee and its owner to sign such agreements and releases within thirty (30) days after their delivery to the franchisee will be deemed an election by the franchisee not to renew the Franchise. This means that if the franchisee does not comply with these requirements within the specified timeframe, they will lose their right to renew the Browns Chicken franchise.