factual

How is 'permanent disability' defined for a Browns Chicken franchisee or owner of a controlling interest?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee or the owner of a controlling interest in Franchisee will be deemed to have a "permanent disability" if his usual, active

participation in the Store as contemplated by this Agreement is for any reason curtailed for a continuous period of three (3) months.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to Browns Chicken's 2025 Franchise Disclosure Document, a franchisee or owner of a controlling interest in the franchise is considered to have a "permanent disability" if their active participation in the Browns Chicken store is curtailed for a continuous period of three months. This definition is important because it triggers certain provisions within the franchise agreement related to the transfer of the franchise and the operation of the store.

Specifically, upon the permanent disability of the franchisee or the owner of a controlling interest, their representative is required to appoint a manager to operate the store within 30 days. This manager is subject to Browns Chicken's approval and may be required to complete the franchisor's training program. The manager must also sign a Confidentiality and Non-Competition Agreement.

If Browns Chicken believes the store is not being managed properly, they have the right to appoint their own manager for up to 30 days, during which time the franchisee must either have their manager undergo additional training or appoint a new manager. Failure to do so could result in the termination of the franchise agreement. This definition ensures that in the event of a franchisee's disability, the Browns Chicken business continues to operate under acceptable management and brand standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.