What is the Browns Chicken franchisee's obligation regarding Video Gaming?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Brown may require Franchisee to offer video gaming in Franchisee's Store. If Brown requires Franchisee to offer video gaming in Franchisee's Store, the parties will execute Rider G, the Video Gaming Rider, to this Franchise Agreement, the Video Gaming Rider. Franchisee must have a license to sell alcoholic beverages in order to obtain and maintain a video gaming license. Franchisee will be subject to other restrictions, as set forth in Rider G.
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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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- 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 requests, and Brown consents in writing to such request, for a partial or complete cessation of Video Gaming at Franchisee's Store.
Franchisee shall construct a separate area ("Gaming Area"), separated by an appropriate physical barrier, within Franchisee's Store where the Video Gaming Terminals are located, in compliance with Section 58 of the Act.
Franchisee shall restrict access to the Gaming Area only to persons who are age twenty-one (21) years and older, as mandated by Sections 40 and 58 of the Act.
Franchisee shall comply with the requirement in Section 58 of the Act that the owner, manager or employee of the Licensed Establishment who is over 21 years of age shall be present during all hours of operation.
The Video Gaming Terminals or the entrance to the Gaming Area must be within the view of at least one owner, manager or employee who is over 21 years of age.
Franchisee shall comply with the requirement in Section 60(d) of the Act to maintain an adequate video gaming fund, in the amount determined by the Board.
In the event Franchisee violates any provision of the Act or of this Rider G, or of the Franchise Agreement, Franchisor shall have the right to terminate this Rider G.
Franchisor shall give Franchisee ten (10) days prior notice of termination of this Rider G, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event Franchisor may terminate this Rider G immediately effective upon revocation of Franchisee's State License.
If Franchisor terminates this 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.
Franchisee is not acquiring any territorial rights in connection with its Video Gaming activities, as it relates to the consent by Franchisor to any other Brown's franchisee to offer Video Gaming, or to Video Gaming that may be offered by any owner or officer of Brown in any business owned or operated by such owner or officer.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees may be required to offer video gaming in their stores. If Browns Chicken requires video gaming, the franchisee must execute Rider G, the Video Gaming Rider, to the Franchise Agreement. To offer video gaming, the franchisee must have a license to sell alcoholic beverages and will be subject to other restrictions detailed in Rider G.
The franchisee must report the presence of video gaming to their insurance carrier and maintain adequate liability insurance as determined by Browns Chicken. The franchisee is obligated to indemnify Browns Chicken against any claims, costs, damages, losses, or causes of action arising from video gaming activities in the franchisee's store. The franchisee must take all necessary steps to maintain their store as a Licensed Establishment and operate all Video Gaming Terminals during legal hours of operation, unless Browns Chicken consents in writing to a cessation of video gaming.
The franchisee is responsible for constructing a separate Gaming Area within the store, separated by a physical barrier, in compliance with Section 58 of the Act. Access to the Gaming Area must be restricted to individuals 21 years of age or older, as mandated by Sections 40 and 58 of the Act. The franchisee must ensure that an owner, manager, or employee over 21 years of age is present during all hours of operation and that the Video Gaming Terminals or the entrance to the Gaming Area are within their view. Additionally, the franchisee must comply with Section 60(d) of the Act by maintaining an adequate video gaming fund, as determined by the Board.
Browns Chicken retains the right to terminate Rider G if the franchisee violates any provision of the Act, Rider G, or the Franchise Agreement. Browns Chicken will provide ten days' notice of termination, except in the case of license revocation, which allows for immediate termination. If Rider G is terminated, the franchisee must promptly remove all video gaming terminals and equipment and cease all video gaming activities. The franchisee does not acquire any territorial rights related to video gaming, meaning Browns Chicken can allow other franchisees or its own officers to offer video gaming in other businesses.