Is a Browns Chicken franchisee responsible for complying with all requirements imposed on Licensed Establishments under the Act and the Board's Adopted Rules and Policies?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
nably necessary.
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- Franchisee indemnifies Franchisor against any claim, cost, damage, loss, or cause of action that may be brought against Franchisor arising out of the Video Gaming activities in Franchisee's Store.
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- This Rider G is not assignable by Franchisee under any circumstances, even if Franchisee's Franchise Agreement is assigned. The reason for this provision is that Section 50(c) of the Act provides that no license issued under the Act is transferable or assignable.
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- Franchisee shall take all steps required to maintain Franchisee's Store as a Licensed Establishment.
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Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee's store is a Licensed Establishment, they must take all required steps to maintain it as such. This obligation is outlined in Rider G of the franchise agreement, specifically addressing Video Gaming activities regulated by the Illinois Video Gaming Act. The Act is supervised by the Illinois Gaming Board.
Specifically, Section 50(c) of the Act states that no license issued under the Act is transferable or assignable. The franchisee must also report the presence of Video Gaming to their insurance carrier and maintain adequate liability insurance as determined by Browns Chicken.
This requirement ensures that Browns Chicken franchisees operating Video Gaming Terminals comply with all applicable laws and regulations, protecting both the franchisee and franchisor from potential legal issues and liabilities associated with video gaming activities. It also ensures the franchisee operates the Video Gaming Terminals during all legal hours of operation, unless Browns Chicken consents to a cessation of Video Gaming at the franchisee's store.