How much notice must a Browns Chicken franchisee give to renew the franchise term?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
eement | | e. Assignment by | Paragraph 7 | You may not assign agreement | | Franchisee | | |
B. FRANCHISE AGREEMENT
| 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. |
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, a franchisee must provide six months' notice of their intent to renew the franchise agreement. This notice must be given before the end of the current franchise term. If the franchisee meets this notification requirement and is in compliance with the Franchise Agreement, Browns Chicken will renew the franchise for a term of either one year (minimum) or five years (maximum).
In addition to providing timely notice and being in compliance with the existing agreement, Browns Chicken requires franchisees to meet other conditions to renew their franchise. These conditions include compliance with the Franchise Agreement and any other agreements, including leases. Franchisees must also remodel and update their location, sign a new franchise agreement, and pay a $5,000 renewal fee.
It is important to note that the renewal agreement may contain terms and conditions that are materially different from the original contract. However, the royalty fee will not be greater than the royalty fee that Browns Chicken imposes on similarly-situated renewing franchisees. Prospective franchisees should carefully consider these renewal terms and conditions, as they could significantly impact the operation and profitability of their Browns Chicken franchise.