What happens if a Browns Chicken franchisee fails to secure a required 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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee fails to secure a necessary license or permit for operating their store, Browns Chicken has the option to obtain the license or permit on the franchisee's behalf.
The franchisee is obligated to fully cooperate with Browns Chicken in their efforts to secure the license or permit. Furthermore, the franchisee is responsible for paying Browns Chicken, upon demand, for all costs and charges incurred by Browns Chicken in the process of obtaining the license or permit.
This clause in the franchise agreement protects Browns Chicken by ensuring that stores are legally compliant, even if the franchisee initially fails to obtain the necessary permissions. It also places the financial burden of rectifying such failures on the franchisee, incentivizing them to secure all required licenses and permits promptly. This is a fairly standard practice in franchising, as franchisors need to maintain brand standards and legal compliance across all locations.