What is the Browns Chicken franchisor giving to the franchisee 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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Browns Chicken may require franchisees to offer video gaming in their stores. If Browns Chicken requires video gaming, both parties will 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 the restrictions outlined in Rider G.
Rider G outlines several requirements and restrictions related to video gaming. The franchisee must report the presence of video gaming to their insurance carrier and maintain adequate liability insurance. The franchisee also agrees to indemnify Browns Chicken against any claims arising from video gaming activities at the store. Rider G is not assignable by the franchisee, even if the Franchise Agreement is assigned, due to restrictions in the Illinois Video Gaming Act.
The franchisee is obligated to maintain their store as a Licensed Establishment and operate the video gaming terminals during legal hours of operation, unless Browns Chicken consents in writing to a cessation of video gaming. The franchisee must construct a separate gaming area within the store, restrict access to individuals 21 years or older, and ensure that the gaming area is within view of an owner, manager, or employee who is over 21 years of age. The franchisee must also comply with the requirement to maintain an adequate video gaming fund.
Browns Chicken retains the right to terminate Rider G if the franchisee violates any provision of the Act, Rider G, or the Franchise Agreement. The franchisee will receive ten days' notice of termination, except in the case of license revocation, which allows for immediate termination. If Rider G is terminated, all video gaming terminals and equipment must be removed, and the franchisee is prohibited from operating any video gaming activities at the store. 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.