What is the Browns Chicken Prospective Franchisee required to do within ten days of site approval by Browns Chicken?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless PROSPECTIVE FRANCHISEE withdraws his application for a Franchise as hereinafter provided, PROSPECTIVE FRANCHISEE agrees that within ten (10) days of approval by BROWN of a site for PROSPECTIVE FRANCHISEE's Store, PROSPECTIVE FRANCHISEE will execute BROWN's Franchise Agreement, in the form delivered to PROSPECTIVE FRANCHISEE.
In the event PROSPECTIVE FRANCHISEE fails to execute BROWN's Franchise Agreement within said ten (10) days, BROWN may, at its sole option, terminate this Preliminary Agreement, in which event PROSPECTIVE FRANCHISEE shall not be entitled to any refund of the Deposit.
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 must execute Browns Chicken's Franchise Agreement within ten days of the franchisor's approval of the site for the franchisee's store. The franchise agreement provided to the prospective franchisee must be in the same form as the one delivered to them previously.
If the prospective franchisee fails to execute the Franchise Agreement within the specified ten-day period, Browns Chicken has the option to terminate the Preliminary Agreement. Should Browns Chicken choose to terminate the agreement under these circumstances, the prospective franchisee will not be entitled to a refund of their deposit.
This requirement underscores the importance of a prospective franchisee being prepared to move forward swiftly once a site is approved. It also highlights the non-refundable nature of the deposit if the franchisee delays signing the agreement, giving Browns Chicken the option to terminate the agreement and retain the deposit.