What does the Browns Chicken Prospective Franchisee acknowledge and agree to regarding the uncertainty of site criteria?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Both PROSPECTIVE FRANCHISEE and BROWN acknowledge that application of criteria that have been effective with respect to other sites and premises may not be predictive of potential for all sites and premises and that, subsequent to BROWN's approval of a site and premises, demographic and/or economic factors, including competition from other businesses, included in or excluded from BROWN's criteria could change, thereby altering the potential of a site and premises.
The uncertainty and instability of such criteria are beyond BROWN's control and PROSPECTIVE FRANCHISEE agrees that BROWN shall not be responsible for the failure of a site and premises approved by BROWN to meet PROSPECTIVE FRANCHISEE's expectations as to potential revenue or operational criteria.
PROSPECTIVE FRANCHISEE further acknowledges and agrees that his acceptance of a Franchise for the operation of a BROWN Systems Store at the premises is based on his own independent investigation of the suitability of the premises.
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, a prospective franchisee acknowledges and agrees that the application of site selection criteria that have been effective for other locations may not accurately predict the potential success of all sites. Demographic and economic factors, including competition, can change after Browns Chicken approves a site, which could alter the site's potential.
Browns Chicken states that the uncertainty of site criteria is beyond their control, and the prospective franchisee agrees that Browns Chicken is not responsible if an approved site fails to meet the franchisee's expectations regarding revenue or operational criteria. The prospective franchisee also acknowledges that their decision to accept a franchise for a Browns Chicken store is based on their own independent investigation of the site's suitability.
This means that while Browns Chicken provides site selection criteria and approves locations, the ultimate responsibility for assessing the viability of a site rests with the franchisee. The franchisee bears the risk that a site approved by Browns Chicken may not perform as expected due to changing market conditions or other unforeseen factors. Browns Chicken approval of a location is not a guarantee of success, and franchisees should conduct their own due diligence before committing to a site.
Prospective franchisees should carefully consider these factors and conduct thorough market research and financial analysis before selecting a site. Consulting with experienced business advisors and real estate professionals can also help franchisees make informed decisions and mitigate the risks associated with site selection.