What is the Browns Chicken franchisee's obligation regarding the termination right described in paragraph 17?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisee violates any provision of Rider G or any provision of this Franchise Agreement, Franchisor shall have the right to terminate Rider G. Franchisor shall give Franchisee ten (10) days prior notice of termination of Rider G, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event Franchisor may terminate Rider G immediately effective upon revocation of Franchisee's State License. Franchisee will require that any agreement with a terminal operator regarding video gaming in Franchisee's Store (a "Use Agreement") contain a provision stating that such Use Agreement is subject to termination on ten (10) days prior notice in the event that Franchisee exercises the termination right described herein, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event the Use Agreement will be subject to immediate termination. If Franchisor terminates Rider G, all video gaming terminals and other equipment shall be removed promptly in accordance with the terms of the Use Agreement, and Franchisee shall be prohibited from operating any Video Gaming activities at Franchisee's Store.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
Based on the 2025 Browns Chicken Franchise Disclosure Document, if a franchisee violates any provision of Rider G or the Franchise Agreement, Browns Chicken has the right to terminate Rider G. Browns Chicken must provide the franchisee with ten days' prior notice of termination, unless the violation involves the revocation of the franchisee's license as a Licensed Establishment, in which case Browns Chicken can terminate Rider G immediately upon the license revocation.
The franchisee is obligated to include a provision in any agreement with a terminal operator regarding video gaming in their store (referred to as a "Use Agreement"). This provision must state that the Use Agreement is subject to termination with ten days' notice if the franchisee exercises the termination right described in the agreement, unless the violation is the revocation of the franchisee's license as a Licensed Establishment, in which case the Use Agreement is subject to immediate termination.
If Browns Chicken terminates Rider G, the franchisee must ensure that all video gaming terminals and equipment are promptly removed according to the terms of the Use Agreement. Additionally, the franchisee will be prohibited from operating any video gaming activities at their store. This clause ensures that Browns Chicken can control activities associated with its brand and maintain standards across all franchise locations.