How long does the Browns Chicken Preliminary Agreement give you to locate a site?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
f $0 in 2024 and $7,999 in 2023) | 21,293 | 43,420 | | Accounts Receivable - VIE (Net of Allowance for | | | | Doubtful Accounts of $0 in 2024 and $0 in 2023) | 14,423 | 24,810 | | Uniform & Equipment Inventory | 4,625 | 4,968 | | Prepaid Expenses | 4,350 | 6,750 | | Total Current Assets | 102,660 | 223,954 | after execution of this Preliminary Agreement, a site suitable for the operation of a Store acceptable to
BROWN within the following area: _______________________________ (the "Area").
- It shall be the obligation of PROSPECTIVE FRANCHISEE to locate, within sixty (60) days
- a. The Area is not exclusive or protected either during the term of this Agreement or in the event a franchise is granted. BROWN has the right to offer and grant a franchise to any other party within the Area. In the event BROWN grants a franchise to another party within the Area during the term of this Agreement, PROSPECTIVE FRANCHISEE may terminate this Agreement and obtain a refund of the Deposit as provided in Paragraph 6 below.
- b. BROWN shall not unreasonably withhold approval of sites that meet its standards for general location, physical and demographic characteristics of the neighborhood, traffic pattern, parking, competition, proximity to other businesses (including other Stores), the nature of other businesses in proximity to the site, layout and other physical characteristics, rental, lease duration and other lease terms and conditions for the Store.
- c. Upon execution of this Agreement, BROWN will furnish PROSPECTIVE FRANCHISEE in writing criteria for site selection, which materials must be returned to BROWN upon termination of this Agreement.
- d.
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the Preliminary Agreement grants prospective franchisees 60 days to locate a site suitable for a Browns Chicken store. This site must be acceptable to Browns Chicken and within a defined area specified in the agreement.
It's important to note that this designated area is not exclusive or protected during the agreement's term. Browns Chicken retains the right to offer and grant franchises to other parties within the same area. If Browns Chicken grants a franchise to another party in the area during the term, the prospective franchisee can terminate the agreement and receive a refund of their deposit.
Browns Chicken also provides written criteria for site selection upon the agreement's execution. If the prospective franchisee fails to locate an acceptable site within the 60-day timeframe, Browns Chicken has the option to terminate the Preliminary Agreement and refund a portion of the deposit, specifically the deposit less $3,000. However, the agreement can be extended if both parties mutually agree, and if a proposed site is submitted within 20 days before the expiration date, the agreement remains active until Browns Chicken evaluates the site.