What provision must a Browns Chicken franchisee include in their Use Agreement with a terminal operator?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will require that any agreement with a terminal operator regarding video gaming in Franchisee's Store (a "Use Agreement") contain a provision stating that such Use Agreement is subject to termination on ten (10) days prior notice in the event that Franchisee exercises the termination right described herein, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event the Use Agreement will be subject to immediate termination.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee enters into an agreement with a terminal operator for video gaming in their store, this agreement, termed a "Use Agreement," must include a specific provision. This provision must state that the Use Agreement is subject to termination with ten days' prior notice if Browns Chicken exercises its right to terminate Rider G of the franchise agreement.
However, there is an exception to the ten-day notice. If the franchisee's license as a Licensed Establishment is revoked, the Use Agreement must be subject to immediate termination. This condition ensures that Browns Chicken can immediately cease video gaming activities at a franchise location if the franchisee loses its license to operate such activities.
This requirement protects Browns Chicken by allowing them to terminate video gaming operations quickly if the franchisee violates Rider G or loses their license. It also ensures compliance with state and local regulations regarding licensed establishments and video gaming. The franchisee is responsible for ensuring that the Use Agreement with the terminal operator includes this provision to avoid any potential conflicts or legal issues.