If a Browns Chicken franchisee fails to secure a required license, can Browns Chicken obtain it on their behalf?
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 the 2025 Browns Chicken Franchise Disclosure Document, Browns Chicken has the option to obtain any required license or permit on behalf of the franchisee if the franchisee fails to do so. 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 that Browns Chicken incurs while obtaining the license or permit. This means that the franchisee will ultimately bear the financial burden of securing the necessary licenses, even if Browns Chicken steps in to facilitate the process.
This clause in the franchise agreement protects Browns Chicken by ensuring that the store can operate legally, even if the franchisee is unable to initially obtain the required permits. However, it also places a responsibility on the franchisee to be proactive in obtaining all necessary licenses and permits, as they will be responsible for any costs incurred by Browns Chicken in securing them.