What is the Browns Chicken franchisee's responsibility regarding obtaining renewals of its State License?
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.
(2) Health certification: Every member of Franchisee's management staff must be certified by the Health Department and maintain "Health Department-certified management" status.
(3) Franchisee shall comply at its own expense for complying with the Food and Drug Administration ("FDA") and the United States Department of Agriculture and those federal and state laws and regulations relating to food and nutrition labeling and claims, including the Federal Food, Drug and Cosmetic Act, 21 U.S.C. §101 et seq. (the "Act"), as amended by the Affordable Care Act of 2010 and the regulations promulgated thereunder, including the rule mandating nutrition labeling of menu items and calorie content on menus.
Franchisee shall also comply with any and all nutrition labeling requirements imposed by federal, state or local law which may be enacted after the effective date of this Franchise Agreement.
Franchisee acknowledges and agrees to strictly comply with the Brown's prescribed menu items, and to follow the recipes and food preparation methods exactly as set forth in the Operations Manual, for all products offered and sold in Franchisee's BROWN's Restaurant.
In the event Franchisee deviates from the prescribed recipes, ingredients, preparation methods, or menu boards, Franchisee shall be responsible for obtaining his/her own nutrition information in order to comply with applicable state and federal nutrition labeling requirements.
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. Should the franchisee fail to do so, Browns Chicken has the option to obtain the licenses or permits on the franchisee's behalf. In such cases, the franchisee is obligated to fully cooperate with Browns Chicken's efforts and must reimburse Browns Chicken for all associated costs and charges upon demand.
This requirement places a significant responsibility on the franchisee to ensure compliance with all applicable regulations. Failure to maintain the necessary licenses can lead to operational disruptions and potential penalties. By reserving the right to obtain licenses on behalf of the franchisee, Browns Chicken aims to protect its brand and ensure that all franchise locations meet the required legal standards.
Furthermore, the franchisee must ensure that every member of their management staff is certified by the Health Department and maintains "Health Department-certified management" status. The franchisee is also responsible for complying with FDA and USDA regulations, as well as federal and state laws related to food and nutrition labeling. This includes adhering to the prescribed menu items, recipes, and food preparation methods outlined in the Operations Manual. Any deviation from these standards requires the franchisee to obtain their own nutrition information to comply with labeling requirements, though such deviations are considered a default under the Franchise Agreement.
Overall, these stipulations highlight the importance of diligent compliance and the potential financial and operational ramifications of failing to meet regulatory requirements. Prospective Browns Chicken franchisees should carefully consider these obligations and ensure they have the resources and systems in place to maintain all necessary licenses and certifications.