How much notice must a Browns Chicken franchisee give to renew their 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 written notice of their intent to renew the franchise agreement six months prior to the end of the current term. If the franchisee meets this requirement and is in compliance with the existing Franchise Agreement, Browns Chicken will renew the franchise.
The renewal term can be either one year (minimum) or five years (maximum), providing some flexibility for the franchisee. However, the renewal is contingent on the franchisee's adherence to the terms of the Franchise Agreement, including any other agreements and leases.
To finalize the renewal, the franchisee must remodel and update the premises, sign a new franchise agreement, and pay a renewal fee of $5,000. It is important to note that the terms and conditions of the new franchise agreement may differ materially from the original contract, although the royalty fee will not be greater than what Browns Chicken then imposes on similarly-situated renewing franchisees. This means that while the royalty rate is capped, other aspects of the agreement could change, potentially impacting the franchisee's operations and obligations.