What is the Browns Chicken prospective franchisee's responsibility regarding 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.
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, it is the prospective franchisee's responsibility to conduct their own independent investigation to determine if the premises are suitable for a Browns Chicken store. Browns Chicken's approval of a location only indicates that the site meets the company's criteria at the time of evaluation.
The FDD emphasizes that Browns Chicken does not guarantee the suitability of the premises, even if they approve the location. Demographic and economic factors can change, affecting the potential of the site. The prospective franchisee acknowledges that Browns Chicken is not responsible if the approved site fails to meet the franchisee's expectations regarding revenue or operational criteria.
This means that while Browns Chicken provides criteria for site selection and inspects potential locations, the final decision and risk assessment rest with the franchisee. It is crucial for prospective Browns Chicken franchisees to not solely rely on the franchisor's approval but to also engage their own experts to evaluate the location's potential, considering local market conditions and other relevant factors. Browns Chicken also provides in writing criteria for site selection upon execution of the agreement.