Who incurs the cost of the Square equipment for Browns Chicken franchisees?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ny source; the cost is included in the estimates in Item 7 under Equipment Costs.
You must obtain and record all sales on a POS System and credit card processing from a vendor we approve. Currently our approved vendor is Square, Inc. The POS System and credit card transactions are all processed through an iPad and cash register meeting the Square configuration.
The following are the components for the Square POS System: (1) an iPad; (2) a Square Stand; (3) A Square Contactless and Chip Reader; (4) a Compatible Receipt printer, and (5) a Compatible Cash Drawer. Brown incurs the costs of the Square equipment and furnishes it to you for no charge. You must pay us the monthly processing fee, which is for the time card and employee permissions online ordering. The amount, estimated at between $50 and $200 per month, depends on the actual volume of transactions you process on the Square system.
Brown reserves the right to access information and data pertaining to your Store produced by and/or stored on your computer system. The information and data we may access includes that of any Third-Party Delivery Service companies through which customers purchase menu items from your Store.
The POS System records and processes all cash transactions in your Store. We do not require that you upgrade or update your POS System. Square will provide you ongoing support, which is included in the monthly processing fee. You are solely responsible for protecting the POS and computer systems from viruses, computer hackers, and other computer-related and technology-related problems.
You must also use Square for your credit card processing. The fees for your credit card processing will be ba
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–30)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken incurs the costs of the Square equipment and furnishes it to the franchisee for no charge. This equipment includes an iPad, a Square Stand, a Square Contactless and Chip Reader, a compatible receipt printer, and a compatible cash drawer. However, the franchisee is responsible for paying a monthly processing fee, estimated to be between $50 and $200, which covers the time card and employee permissions for online ordering. The actual amount of the monthly fee depends on the volume of transactions processed through the Square system.
This arrangement benefits the franchisee by reducing the initial investment needed to start the business, as Browns Chicken covers the cost of the Square equipment. However, franchisees must budget for the ongoing monthly processing fees, which can vary based on sales volume. It is important for prospective franchisees to understand how their anticipated transaction volume will impact these monthly costs to accurately forecast their operating expenses.
Browns Chicken also retains the right to access information and data from the franchisee's store produced or stored on the computer system, including data from third-party delivery services. Franchisees are solely responsible for protecting the POS and computer systems from viruses, computer hackers, and other technology-related problems. Franchisees must also use Square for credit card processing, with fees based on the dollar volume of credit card purchases.