What must Browns Chicken franchisees do if they want to advertise or promote their Video Gaming activities?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may not advertise or promote its Video Gaming activities without the prior written consent of Franchisor, which Franchisor may in its sole discretion grant or deny.
Advertising or promotions, if approved by Franchisor, must be conducted in accordance with the Act, or any rules, regulations or policies of the Board.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, a franchisee must obtain prior written consent from Browns Chicken before advertising or promoting video gaming activities. Browns Chicken has the sole discretion to grant or deny this request. If Browns Chicken approves the advertising or promotion, the franchisee must ensure that all activities comply with the Illinois Video Gaming Act and any rules, regulations, or policies set by the Illinois Gaming Board.
This requirement gives Browns Chicken significant control over how its franchisees market video gaming, ensuring that all advertising aligns with the brand's overall image and complies with legal requirements. It also protects Browns Chicken from potential liabilities or negative publicity arising from inappropriate or non-compliant advertising by franchisees.
In the franchise industry, franchisors often maintain control over advertising and marketing to ensure brand consistency and compliance. Browns Chicken's policy is consistent with this practice, particularly given the regulated nature of video gaming. A prospective franchisee should carefully consider this requirement and discuss with Browns Chicken what types of advertising and promotional activities are likely to be approved.
Furthermore, franchisees are required to pay an advertising fee of four percent (4%) of gross sales from video gaming to the Advertising Fund. This contribution ensures that franchisees participate in the collective advertising efforts managed by Browns Chicken, further emphasizing the importance of adhering to the franchisor's advertising guidelines and approved materials.