What is the Browns Chicken franchisor's role in relation to the franchisee's Video Gaming?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
inancial reports, or any other data in your possession relating to my business. | | writing to you, with a copy to Brown's Chicken, LLC. | You may rely on this letter in furnishing such data, unless and until I revoke the authorization in | | Date: | | | | | | | Signature and title (if applicable) of Franchisee | | | By: | | | |
Title: ________________________________
RIDER G
TO THE BROWN'S CHICKEN, LLC FRANCHISE AGREEMENT
VIDEO GAMING
| THIS RIDER G entered into this day of, 20, is to a Franchise Agreement dated by and between BROWN'S CHICKEN, LLC, an Illinois limited liability company, with its principal office at 55 E. Park Boulevard, Villa Park, Illinois 60181 ("Brown") and, a corporation, whose principal address is ("Franchisee"). | |
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| Recitals | |
| A. | The Franchise Agreement dated between the parties ("Franchise |
| Agreement") authorizes Franchisee to own and operate a restaurant under the name | |
| "BROWN'S CHICKEN" and other associated names and logos (the "Marks"), at which | |
| Franchisee uses Brown's methods of preparing and serving cooked chicken, pasta, | |
| sandwiches, and other food products. Brown has granted to franchisee a franchise to sell | |
| products and services authorized and approved by Brown (the "Authorized Products") | |
| and utilizing Brown's business format, systems, methods, specifications, standards, | |
| operating procedures, operating assistance, advertising services and Marks. | |
| B. | Franchisee's franchised restaurant is located at, |
| Illinois ("Franchisee's Store"). | |
| C. | Franchisee wishes to offer Video Gaming, which is defined on the attached Schedule |
| "A," in addition to the Authorized Services, at Franchisee's Store. | |
| D. | Franchisor gives its conditional consent to Franchisee to offer Video Gaming at |
| Franchisee's Store, on the terms and conditions of this Rider G. | |
| In consideration of the mutual and several covenants | |
| set forth herein, and for other good and | |
| valuable consideration, the receipt and sufficiency of which are hereby acknowledge, the parties | |
| hereto agree as follows: | |
| 1. | Franchisor hereby consents to Franchisee's offering Video Gaming, as that term is |
| defined on attached Schedule "A," at Franchisee's Store, on the terms and conditions of | |
| this Rider G. |
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- Franchisee acknowledges that Video Gaming is regulated by the Illinois Video Gaming Act, 230 ILCS 40/1, et seq. ("the Act") and is supervised by the Illinois Gaming Board (the "Board"), as authorized by Section 78 of the Act.
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- Franchisee acknowledges and agrees that Franchisee's Store is considered a "Licensed Establishment" within the meaning of the Act (Section 25(e)), and that Franchisee must comply with all the requirements imposed on Licensed Establishments under the Act and the Board's Adopted Rules and Policies. Franchisee agrees that Franchisee is responsible for retaining its own legal counsel in connection with the Video Gaming activities at Franchisee's Store, and Franchisee is not relying on the legal, business, or operational advice or guidance from Franchisor in connection with Video Gaming.
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- Franchisee acknowledges and understands that under Section 55 of the Act, Franchisee must have a valid liquor license in order to be licensed as a Licensed Establishment. Franchisee shall maintain its liquor license in good standing and shall furnish Franchisor a copy of its liquor license and all renewals.
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- Franchisee shall obtain a license ("State License") as a Licensed Establishment from the Board, as required by Section 45 of the Act, and shall obtain renewals of its State License annually or at such other intervals as required by the Act.
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Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the franchisor, Browns Chicken, LLC, plays a significant role in the franchisee's ability to offer video gaming at their store. Browns Chicken gives conditional consent for franchisees to offer video gaming, contingent upon the terms and conditions outlined in Rider G of the franchise agreement. This consent is not guaranteed, as Browns Chicken retains the right to require franchisees to offer video gaming, necessitating the execution of Rider G.
Browns Chicken also outlines specific 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 as determined by Browns Chicken. The franchisee is obligated to indemnify Browns Chicken against any claims arising from video gaming activities at the store. Furthermore, Browns Chicken can terminate Rider G if the franchisee violates any provision of the Illinois Video Gaming Act, Rider G, or the Franchise Agreement, with a ten-day notice, or immediately if the franchisee's license as a Licensed Establishment is revoked.
Browns Chicken does not allow franchisees to acquire territorial rights related to video gaming, retaining the right to consent to other Browns Chicken franchisees offering video gaming or to offer video gaming in businesses owned or operated by Browns Chicken's owners or officers. Browns Chicken's role extends to ensuring compliance with the Illinois Video Gaming Act, including requirements for a separate gaming area, age restrictions, and the presence of qualified personnel during operating hours. These stipulations ensure that Browns Chicken maintains control over the integrity and legality of video gaming activities within its franchise system.