How often is the royalty fee on food sales due for a Browns Chicken franchise?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee on food sales1 | 5% of Gross Sales2 subject to modification as provided below. | Weekly | You must pay by automatic bank draft. |
| Video Gaming Royalty Fee | 10% of gross sales from Video Gaming revenue. | Weekly | You must pay by automatic bank draft. |
| Advertising1 | 4% of Gross Sales2 | Weekly | You must pay by automatic bank draft. See Item 11 regarding the Advertising Fund. |
| Advertising from Video Gaming Sales | 4% of gross sales from Video Gaming | Weekly | You must pay by automatic bank draft. See Item 11 regarding the Advertising Fund. |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the royalty fee on food sales is due weekly. Browns Chicken franchisees must pay this fee, which is 5% of gross sales, through automatic bank draft. Gross sales include the aggregate actual gross selling prices of all foods, beverages, other products, services, and entertainment/video gaming sold by the store, whether for cash or credit.
There are a few exclusions from gross sales when calculating the royalty fee. These exclusions include sales, use, or excise taxes passed on to the customer and paid to the appropriate taxing authorities, the amount of all refunds, adjustments, credits, and allowances made by the store, and revenues of any fees paid by the franchisee to Third-Party Delivery Services.
Browns Chicken may periodically reduce or not charge the royalty fee as part of community service projects. The FDD also mentions that Browns Chicken has negotiated royalty rates on a case-by-case basis, depending on the circumstances involved. Browns Chicken also waives royalties for one store that serves as their training facility and reduced royalties for one store for a new franchisee to assist them during their initial stage of operation.