Does Browns Chicken guarantee the success of a site based on its approval criteria?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
BROWN's approval of the premises indicates only that BROWN believes that the premises falls within the acceptable criteria established by BROWN as of the time period encompassing the evaluation.
Both PROSPECTIVE FRANCHISEE and BROWN acknowledge that application of criteria that have been effective with respect to other sites and premises may not be predictive of potential for all sites and premises and that, subsequent to BROWN's approval of a site and premises, demographic and/or economic factors, including competition from other businesses, included in or excluded from BROWN's criteria could change, thereby altering the potential of a site and premises.
The uncertainty and instability of such criteria are beyond BROWN's control and PROSPECTIVE FRANCHISEE agrees that BROWN shall not be responsible for the failure of a site and premises approved by BROWN to meet PROSPECTIVE FRANCHISEE's expectations as to potential revenue or operational criteria.
PROSPECTIVE FRANCHISEE further acknowledges and agrees that his acceptance of a Franchise for the operation of a BROWN Systems Store at the premises is based on his own independent investigation of the suitability of the premises.
Unless PROSPECTIVE FRANCHISEE withdraws his application for a Franchise as hereinafter provided, PROSPECTIVE FRANCHISEE agrees that within ten (10) days of approval by BROWN of a site for PROSPECTIVE FRANCHISEE's Store, PROSPECTIVE FRANCHISEE will execute BROWN's Franchise Agreement, in the form delivered to PROSPECTIVE FRANCHISEE.
In the event PROSPECTIVE FRANCHISEE fails to execute BROWN's Franchise Agreement within said ten (10) days, BROWN may, at its sole option, terminate this Preliminary Agreement, in which event PROSPECTIVE FRANCHISEE shall not be entitled to any refund of the Deposit.
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken does not guarantee the success of a site, even if the site meets their approval criteria. Browns Chicken states that their approval only indicates that the premises fell within their acceptable criteria at the time of evaluation.
The FDD emphasizes that the criteria used for site selection, while effective for other locations, may not accurately predict the potential of all sites. Factors like demographic or economic changes, including competition, can shift after Browns Chicken approves a site. These factors are outside of Browns Chicken's control, and they will not be held responsible if an approved site fails to meet a franchisee's expectations regarding revenue or operational criteria.
The document makes it clear that prospective Browns Chicken franchisees must conduct their own independent investigations to determine if a site is suitable for their Browns Chicken store. The prospective franchisee acknowledges that Browns Chicken's approval of a site does not constitute a representation or warranty about the site's suitability or potential.