What information is a Browns Chicken franchisee required to furnish to Brown regarding their accountant?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall furnish Brown the identity and contact information for Franchisee's accountant. Franchisee hereby consents, authorizes, and instructs Franchisee's accountant to furnish Brown, upon written request of Brown, copies of Franchisee's financial records, sales information, financial reports, or any other data in the possession of the Franchisee's accountant, relating to Franchisee's business. In connection with this obligation, Franchisee shall execute the authorization to Franchisee's accountant attached to this Agreement as Rider F.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees must provide the identity and contact information of their accountant to Browns Chicken. Furthermore, the franchisee must consent to and authorize their accountant to furnish Browns Chicken with copies of the franchisee's financial records, sales information, financial reports, or any other data related to the franchisee's business upon Browns Chicken's written request.
To formalize this authorization, Browns Chicken requires the franchisee to execute a specific authorization form (Rider F) attached to the franchise agreement. This form serves as a written consent, authorization, and instruction to the accountant, allowing them to release the specified financial data to Browns Chicken upon request. The accountant can rely on this letter unless the franchisee revokes the authorization in writing, with a copy to Browns Chicken.
This requirement enables Browns Chicken to monitor the financial performance and compliance of its franchisees. By having direct access to the franchisee's financial data through the accountant, Browns Chicken can verify the accuracy of reported sales and financial information, ensuring the proper calculation and payment of royalties and other fees. This practice is relatively common in franchising, as it allows the franchisor to maintain oversight and protect the integrity of the brand and the franchise system.