For how long can Browns Chicken manage the Browns Chicken store after the death or permanent disability of the franchisee?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If in the judgment of Brown, the Store is not being managed properly after the death or permanent disability of Franchisee or the owner of a controlling interest in Franchisee, Brown shall have the right to appoint a manager for the Store to manage the Store for up to thirty (30) days.
During that period, Franchisee shall either cause its manager to attend additional training, or appoint another manager.
If Franchisee fails to do so, Brown may terminate this Agreement.
Brown shall periodically discuss the status with the Franchisee or the Franchisee's representative during such period of interim management.
All funds from the operation of the Store during the management by Brown's appointed manager will be kept in a separate bank account, and all expenses of the Store including compensation, other costs, and travel and living expenses of Franchisee's manager will be charged to this account.
Brown shall have the right to charge a reasonable management fee (in addition to the royalty fee and Advertising Fund contributions payable under this Agreement) during the period in which Brown manages the Store as herein provided.
- (3) Definition of Permanent Disability.
Franchisee or the owner of a controlling interest in Franchisee will be deemed to have a "permanent disability" if his usual, active
participation in the Store as contemplated by this Agreement is for any reason curtailed for a continuous period of three (3) months.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if the franchisee or the owner of a controlling interest in the franchise experiences death or permanent disability, Browns Chicken has the right to appoint a manager for the store for up to thirty days if they believe the store is not being managed properly. During this 30-day period, the franchisee's representative must either ensure their appointed manager attends additional training or appoint a new manager. Failure to do so may result in the termination of the franchise agreement.
During the period Browns Chicken manages the store, all funds from the store's operation will be kept in a separate bank account. Expenses, including compensation, costs, and travel and living expenses of the franchisee's manager, will be charged to this account. Browns Chicken also has the right to charge a reasonable management fee in addition to the standard royalty and advertising fees during this management period.
The FDD also defines "permanent disability" as a situation where the franchisee's active participation in the store is curtailed for a continuous period of three months. This definition clarifies the threshold for when these management provisions come into effect, ensuring a consistent understanding between Browns Chicken and its franchisees.