What purchasing arrangement does Browns Chicken have with Pepsi?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ion of such distributor or other supplier by Brown.
Other than under our arrangement with Pepsi and Dr. Pepper/Seven Up, Inc. we do not currently derive any revenue or other material consideration from your purchases or leases from designated or approved suppliers, although we reserve the right to do so in the future.
There are currently 2 purchasing arrangements for franchisees. One is with Pepsi, which is an approved fountain beverage product supplier. Under the Pepsi agreement, you will have the right to purchase Pepsi fountain syrups from Wilkens at then-current published chain account prices, which prices are subject to change from time to time. The Pepsi agreement provides that Pepsi will pay a rebate into the Brown Advertising Fund based on Franchisees' purchases of Pepsi products. During the fiscal year 2024, Pepsi paid Brown rebates totaling $1,637 which was retained by Brown in its general operating budget.
A second purchasing arrangement is with Dr. Pepper/Seven Up, Inc., which is an approved fountain beverage product supplier. During the fiscal year 2024, Dr. Pepper/Snapple paid Brown rebates totaling $308.25,
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, there is a purchasing arrangement with Pepsi. Browns Chicken has approved Pepsi as a fountain beverage product supplier. Franchisees have the right to purchase Pepsi fountain syrups from Wilkens at then-current published chain account prices, which are subject to change.
Under the Pepsi agreement, Pepsi pays a rebate into the Brown Advertising Fund based on franchisees' purchases of Pepsi products. During the fiscal year 2024, Pepsi paid rebates totaling $1,637, which was retained by Brown in its general operating budget. Browns Chicken also has a purchasing arrangement with Dr. Pepper/Seven Up, Inc., which is also an approved fountain beverage product supplier. During the fiscal year 2024, Dr. Pepper/Snapple paid Brown rebates totaling $308.25, which was deposited into the Brown Advertising Fund.
Other than the arrangements with Pepsi and Dr. Pepper/Seven Up, Inc., Browns Chicken does not currently receive any revenue or other material consideration from franchisee purchases from designated or approved suppliers, although they reserve the right to do so in the future. This means that while franchisees are required to purchase from approved suppliers to maintain brand consistency and quality, Browns Chicken's direct financial benefit from these purchases is currently limited to the rebates from Pepsi and Dr. Pepper/Seven Up.