What are the minimum and maximum renewal terms offered by Browns Chicken?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| (a) Length of the franchise term | 2A | Approximately 15 years, subject to earlier termination as provided in the Franchise Agreement. |
| (b) Renewal or extension of the term | 2B | If you are in compliance with the Franchise Agreement and give 6 months’ notice of your intent to renew prior to the end of the term, Brown will renew the franchise for a 1 year (minimum) or 5 year term (maximum). |
| Provision | Section in Agreement | Summary |
| (c) Requirements for Franchisee to renew or extend | 2B | Compliance with Franchise Agreement and any other agreements, including leases; remodel and update; sign new franchise agreement; pay $5,000 renewal fee. The renewal agreement may contain materially different terms and conditions than your original contract, but the royalty fee will not be greater than the royalty fee that we then impose on similarly-situated renewing franchisees |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–38)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the franchise agreement has an initial term of approximately 15 years. If a franchisee is in compliance with the Franchise Agreement and provides 6 months' notice of their intent to renew before the term ends, Browns Chicken will renew the franchise.
The renewal term can be either a minimum of 1 year or a maximum of 5 years. To renew, the franchisee must comply with the Franchise Agreement and any other agreements, including leases. They must also remodel and update the premises, sign a new franchise agreement, and pay a $5,000 renewal fee.
It is important to note that the renewal agreement may contain materially different terms and conditions than the original contract. However, the royalty fee will not be greater than the royalty fee that Browns Chicken then imposes on similarly-situated renewing franchisees. This means that while some terms might change, the royalty structure will remain competitive with other franchisees in similar situations.