Must a manager appointed after a Browns Chicken franchisee's death or disability sign a Confidentiality and Non-Competition Agreement?
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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee or the owner of a controlling interest in the franchise dies or becomes permanently disabled, the executor, administrator, conservator, guardian, or other personal representative must appoint a manager to operate the store. This appointment must occur within a reasonable timeframe, not exceeding 30 days from the date of death or permanent disability. Browns Chicken retains the right to approve the appointed manager.
Furthermore, Browns Chicken may require the appointed manager to attend and complete the Browns Chicken training program for franchisees. Critically, the appointed manager must execute Browns Chicken's current Confidentiality and Non-Competition Agreement. This agreement ensures that the manager is legally bound to protect Browns Chicken's confidential information and refrain from competitive activities, safeguarding the brand's interests during the transition period.
If Browns Chicken determines that the store is not being managed properly following the death or permanent disability of the franchisee or controlling owner, Browns Chicken has the right to appoint its own manager for up to 30 days. During this period, the franchisee must either have their manager undergo additional training or appoint a new manager. Failure to comply may result in the termination of the franchise agreement by Browns Chicken. This provision underscores the importance Browns Chicken places on maintaining operational standards and protecting its brand, even during unforeseen circumstances.