What is the Browns Chicken Prospective Franchisee's responsibility regarding investigating the suitability of the premises?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
proval 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.
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- 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.
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- BROWN agrees to expend such time and effort and to incur such expense as may reasonably be required to inspect sites proposed by PROSPECTIVE FRANCHISEE for a Store to be operated by PROSPECTIVE FRANCHISEE.
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 is responsible for conducting their own independent investigation into the suitability of the premises for a Browns Chicken store. Browns Chicken's approval of a location indicates only that the location meets the company's criteria at the time of evaluation. Browns Chicken explicitly states that its approval does not constitute a representation or warranty regarding the suitability of the premises.
Browns Chicken emphasizes that the criteria used for site selection may not accurately predict the potential of all locations. Demographic and economic factors can change after Browns Chicken approves a site, which could affect the site's potential. Browns Chicken is not liable if a site they approve does not meet the franchisee's expectations regarding revenue or operational criteria.
This means that while Browns Chicken provides site selection criteria and may inspect potential locations, the ultimate responsibility for determining if a location is suitable rests with the franchisee. The franchisee bears the risk that the location may not perform as expected, even if Browns Chicken has approved it. Browns Chicken encourages prospective franchisees to seek independent advice and conduct thorough due diligence before committing to a location.