What is the Browns Chicken franchisee's responsibility regarding obtaining renewals of its Municipal License or Permit?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisee shall fail to secure any license or permit required for the operation of the Store, Brown, at its option and in addition to its other rights and remedies hereunder, may obtain such license or permit on behalf of Franchisee and Franchisee shall fully cooperate with Brown in its efforts to obtain such license or permit on behalf of Franchisee and shall pay to Brown, on demand, all costs and charges incurred by Brown.
C. Development Of Store by Franchisee.
Franchisee agrees to do, or cause to be done, the following:
- (1) Prepare suitable architectural plans and specifications and a site survey for the Store at the Premises, in accordance with Brown's requirements for dimensions, exterior design, materials, parking area, interior layout, equipment, fixtures, furniture, and signs and decorating of a BROWN'S Store and conforming to all applicable ordinances, building, and zoning codes, permit requirements, and lease requirements and restrictions, which plans and specifications must be submitted to and approved in advance by Brown;
- (2) Obtain all required zoning changes and all required health, sanitation, building, utility, sign, and business permits and licenses, and any other required permits and licenses;
- (3) Purchase or lease and install all equipment, fixtures, furniture, and signs required for the Store; and
- (4) Construct all required improvements to and decorate the Premises in compliance with plans and specifications therefor approved by Brown and with all applicable laws.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the franchisee is responsible for securing and maintaining all necessary licenses and permits required to operate their Browns Chicken store. This includes municipal licenses or permits. If the franchisee fails to obtain these, Browns Chicken has the option to obtain them on the franchisee's behalf. The franchisee is then required to cooperate with Browns Chicken in their efforts to secure the licenses or permits and must reimburse Browns Chicken for all associated costs and charges upon demand.
This requirement places a significant responsibility on the franchisee to ensure they are fully compliant with all local regulations. Failure to do so not only risks potential fines or operational disruptions but also allows Browns Chicken to step in and manage the process, with the franchisee bearing all expenses. This could potentially lead to unexpected financial burdens for the franchisee.
Furthermore, the franchisee is responsible for preparing suitable architectural plans and specifications and a site survey for the store at the premises, in accordance with Browns Chicken’s requirements. These plans must conform to all applicable ordinances, building, and zoning codes, permit requirements, and lease requirements and restrictions. The franchisee must submit these plans to Browns Chicken for approval in advance.
In addition to the above, the franchisee must obtain all required zoning changes and all required health, sanitation, building, utility, sign, and business permits and licenses, and any other required permits and licenses. The franchisee is also responsible for purchasing or leasing and installing all equipment, fixtures, furniture, and signs required for the store and constructing all required improvements to and decorating the premises in compliance with plans and specifications approved by Browns Chicken and with all applicable laws.