When is the Browns Chicken initial franchise fee considered fully earned?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee is fully earned by Brown when paid and is non-refundable, with 2 exceptions. A portion of the deposit is refundable as described in the paragraph above. The second exception is if Brown elects to terminate the franchise due to your failure to complete satisfactorily the training program. In that event, Brown will refund to you any payments made of the initial franchise fee, less the expenses Brown incurred in connection with granting you the franchise and training you and your designees.
In its most recent fiscal year, Brown reduced the franchise fee for 2 franchises, as an incentive to open their stores.
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the initial franchise fee is considered fully earned when paid and is generally non-refundable. However, there are a couple of exceptions to this rule.
The first exception involves the Preliminary Agreement. A prospective franchisee may sign this agreement and pay a $15,000 deposit to secure a location. If a site is not located and approved within 60 days, Browns Chicken will refund all but $3,000 of the deposit. However, if a site is approved but the franchisee fails to sign a Franchise Agreement within 10 days, the entire $15,000 deposit is non-refundable.
The second exception arises if Browns Chicken terminates the franchise agreement because the franchisee fails to complete the training program satisfactorily. In this case, Browns Chicken will refund the initial franchise fee payments, but will deduct expenses incurred in granting the franchise and providing training. Browns Chicken also states within the franchise agreement that the initial franchise fee will be fully earned by Browns Chicken upon execution of the agreement.