Is Browns Chicken obligated by the Franchise Agreement to secure a site or premises for franchisees?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- As described above in Item 6, Brown may secure and lease or purchase a site or premises acceptable to you for sublease or resale to you or will assist you in leasing or purchasing a suitable site, although Brown is not obligated by the Franchise Agreement or by any other document to do so (Paragraphs A and B of Section 4 of the Franchise Agreement).
In determining a suitable location for a BROWN's Store, Brown considers such factors as the nature of and proximity to competing stores, traffic patterns, and amount of rent and/or cost of site. You are expected to conduct your own investigation respecting the potential site, including the demographics of the area. You and Brown must agree on a suitable location for a BROWN's Store before you enter into a Franchise Agreement with Brown. Brown will not enter into a Franchise Agreement with you until a suitable location has been agreed upon.
Brown estimates that the length of time between the signing of the Agreement and the opening of the Store will generally range from 60-300 days, depending on the time required to secure and/or develop suitable premises, complete training and other factors. The Franchise Agreement requires you to open the Store for business within 15 days after the later of Brown's determination that the Store is in suitable condition to open or your completion of the initial training. Brown may terminate the Franchise Agreement if the Store is not open within 300 days from the date the Franchise Agreement is signed (in which event the Franchise Fee is not refunded).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–30)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken is not obligated by the Franchise Agreement to secure a site or premises for franchisees. However, Browns Chicken may secure and lease or purchase a site or premises acceptable to the franchisee for sublease or resale, or assist the franchisee in leasing or purchasing a suitable site.
Before a Franchise Agreement is signed, the franchisee and Browns Chicken must agree on a suitable location for a Browns Chicken store. Browns Chicken will not enter into a Franchise Agreement until a suitable location has been agreed upon. In determining a suitable location, Browns Chicken considers factors such as the nature of and proximity to competing stores, traffic patterns, and the amount of rent and/or cost of the site. The franchisee is expected to conduct their own investigation respecting the potential site, including the demographics of the area.
The estimated time between signing the Franchise Agreement and opening the store ranges from 60 to 300 days. This depends on the time required to secure and/or develop suitable premises, complete training, and other factors. The Franchise Agreement requires the franchisee to open the store for business within 15 days after Browns Chicken determines the store is in suitable condition to open or after the franchisee completes initial training, whichever is later. Browns Chicken may terminate the Franchise Agreement if the store is not open within 300 days from the date the Franchise Agreement is signed, and in that event, the Franchise Fee is not refunded.