What is the Browns Chicken franchisee's obligation regarding the Illinois Gaming Board?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
the terms and conditions of this Rider G. | | | In consideration of the mutual and several covenants | | | set forth herein, and for other good and | | | valuable consideration, the receipt and sufficiency of which are hereby acknowledge, the parties | | | hereto agree as follows: | | 1. | Franchisor hereby consents to Franchisee's offering Video Gaming, as that term is | | | defined on attached Schedule "A," at Franchisee's Store, on the terms and conditions of | | | this Rider G. |
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- Franchisee acknowledges that Video Gaming is regulated by the Illinois Video Gaming Act, 230 ILCS 40/1, et seq. ("the Act") and is supervised by the Illinois Gaming Board (the "Board"), as authorized by Section 78 of the Act.
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- Franchisee acknowledges and agrees that Franchisee's Store is considered a "Licensed Establishment" within the meaning of the Act (Section 25(e)), and that Franchisee must comply with all the requirements imposed on Licensed Establishments under the Act and the Board's Adopted Rules and Policies. 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.
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- Franchisee acknowledges and understands that under Section 55 of the Act, Franchisee must have a valid liquor license in order to be licensed as a Licensed Establishment. Franchisee shall maintain its liquor license in good standing and shall furnish Franchisor a copy of its liquor license and all renewals.
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- Franchisee shall obtain a license ("State License") as a Licensed Establishment from the Board, as required by Section 45 of the Act, and shall obtain renewals of its State License annually or at such other intervals as required by the Act.
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- Franchisee, if applicable, shall obtain a license or permit ("Municipal License or Permit") from the municipality in which Franchisee's Store is located, to offer Video Gaming, and shall obtain renewals of its Municipal License or Permit annually or at such other intervals as required by said municipality.
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- Franchisee shall furnish Franchisor copies of the State License and Municipal License or Permit within two (2) days of issuance or renewal.
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- Franchisee agrees that its revenues from Video Gaming shall be considered to be "Gross Sales" as that term is defined in Section 19.B. of the Franchise Agreement.
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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 chooses to offer video gaming at their establishment, they have several obligations related to the Illinois Gaming Board. Browns Chicken franchisees must acknowledge that video gaming is regulated by the Illinois Video Gaming Act and supervised by the Illinois Gaming Board. The franchisee's store is considered a "Licensed Establishment" and they must comply with all requirements imposed on such establishments under the Act and the Board's rules and policies.
Browns Chicken franchisees are responsible for securing their own legal counsel regarding video gaming activities and cannot rely on the franchisor for legal, business, or operational advice related to video gaming. They must also obtain a state license as a Licensed Establishment from the Board, renewing it annually or as required by the Act. If applicable, franchisees must obtain a municipal license or permit from the local municipality to offer video gaming, renewing it as required.
Furthermore, Browns Chicken franchisees must maintain their liquor license in good standing, as it is a prerequisite for being licensed as a Licensed Establishment under Section 55 of the Act. Copies of the state license and municipal license or permit must be furnished to Browns Chicken within two days of issuance or renewal. The franchisee is also obligated to report the presence of video gaming to their insurance carrier and maintain adequate liability insurance as determined by Browns Chicken. Browns Chicken also requires that the franchisee operate all Video Gaming Terminals during all the legal hours of operation as described in Paragraph 13 unless Brown consents to a cessation of Video Gaming at Franchisee's Store.