What is the penalty for non-compliance with the Browns Chicken franchise agreement per day?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Penalty for Non- | $100 per day | Upon demand | See Note 5 below. |
| Compliance with | |||
| Franchise | |||
| Agreement |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, a franchisee may be subject to a penalty of $100 per day for non-compliance with the Franchise Agreement. This includes failure to submit reports or pay fees when due, non-compliance with operating standards as detailed in the Operating Manuals, or other defaults. This penalty is in addition to any other rights and remedies Browns Chicken may pursue under the Franchise Agreement.
This daily penalty can quickly add up and become a significant financial burden for a Browns Chicken franchisee who fails to meet their obligations. It is crucial for franchisees to adhere to all requirements outlined in the Franchise Agreement and Operating Manuals to avoid incurring these penalties. This includes timely submission of reports, payment of fees, and adherence to operating standards.
Franchisees should be aware that this penalty does not limit Browns Chicken's ability to pursue other legal or contractual remedies for the franchisee's non-compliance. Browns Chicken retains the right to take further action to protect its interests, which could include termination of the franchise agreement. Therefore, maintaining compliance is essential for a Browns Chicken franchisee to avoid penalties and maintain a positive relationship with the franchisor.