What is the Browns Chicken franchisee's obligation regarding Section 78 of the Act?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
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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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- So long as Franchisee's Store is a Licensed Establishment, Franchisee shall operate all the Video Gaming Terminals during all the legal hours of operation as described in Paragraph 13 above. The only exception to this obligation is in the event Franchisee requ
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
Based on the 2025 Browns Chicken Franchise Disclosure Document, there is no mention of Section 78 of any Act. However, the FDD does discuss the franchisee's obligations regarding video gaming if they choose to have it at their store.
Specifically, the Browns Chicken franchisee must report to their insurance carrier the presence of video gaming at their store and obtain and maintain liability insurance in an amount that Browns Chicken determines is reasonably necessary. The franchisee also agrees to indemnify Browns Chicken against any claim, cost, damage, loss, or cause of action that may be brought against Browns Chicken arising out of the video gaming activities in the franchisee's store.
Additionally, the franchisee must take all steps required to maintain their store as a Licensed Establishment and operate all the Video Gaming Terminals during all the legal hours of operation, with the only exception being in the event the franchisee requests.