What is the legal basis for the restriction on Video Gaming hours for Browns Chicken franchisees?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that it shall not permit Video Gaming other than during the legal hours of operation allowed for the consumption of alcoholic beverages at Franchisee's Store.
Franchisee acknowledges that this restriction is set forth in Sections 35(b)(2) and 55 of the Act.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the restriction on video gaming hours is legally based on the Illinois Video Gaming Act. Specifically, Browns Chicken franchisees must adhere to legal hours of operation for video gaming, which are the same as those allowed for the consumption of alcoholic beverages at their establishment. The FDD states that this requirement is outlined in Sections 35(b)(2) and 55 of the Act.
This means a Browns Chicken franchisee must ensure that video gaming is only available during the hours when alcohol can legally be served in their restaurant. This is a critical compliance matter, as violating the Act or the Video Gaming Rider (Rider G) to the franchise agreement can lead to the termination of the rider by Browns Chicken.
If Browns Chicken terminates Rider G, the franchisee must promptly remove all video gaming terminals and equipment and cease all video gaming activities at the store. Furthermore, any agreement with a terminal operator must include a provision allowing for termination with ten days' notice if the franchisee's right to operate video gaming is terminated, or immediate termination if the franchisee's license as a Licensed Establishment is revoked.