Must the manager appointed after the death or disability of a Browns Chicken franchisee execute a Confidentiality and Non-Competition Agreement with Browns Chicken?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or permanent disability of Franchisee or the owner of a controlling interest in Franchisee, the executor, administrator, conservator, guardian or other personal representative of such person shall appoint a manager to operate the Store within a reasonable time, not to exceed thirty (30) days from the date of death or permanent disability of such person.
The appointment of such manager shall be subject to the prior written approval of Brown and, if requested by Brown, such manager shall attend and complete Brown's training program for franchisees.
Such manager shall execute Brown's then-current form of Confidentiality and Non-Competition Agreement.
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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee dies or becomes permanently disabled, their representative must appoint a manager to operate the store, subject to Browns Chicken's approval. If Browns Chicken requests, this manager must attend and complete Browns Chicken's training program for franchisees.
Crucially, the appointed manager is required to execute Browns Chicken's current Confidentiality and Non-Competition Agreement. This agreement likely contains provisions to protect Browns Chicken's trade secrets, customer lists, and other confidential information, as well as restrictions on operating or working for competing businesses.
If Browns Chicken believes the store isn't being managed properly after the franchisee's death or disability, Browns Chicken has the right to appoint their own manager for up to 30 days. During this time, the franchisee's representative must either have their manager attend additional training or appoint a new manager. Failure to do so could result in the termination of the franchise agreement. All funds during the time Browns Chicken's appointed manager is running the store 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.