What is the purpose of Rider C in the Browns Chicken franchise agreement?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Rider C
TO THE FRANCHISE AGREEMENT BETWEEN
BROWN'S CHICKEN, LLC
BANK DRAFT AUTHORIZATION FORM
AUTHORIZATION TO HONOR CHECKS OR ELECTRONIC FUNDS TRANSFER DRAWN BY AND PAYABLE TO BROWN'S CHICKEN, LLC
STORE #
BANK ACCOUNT NUMBER
BANK ACCOUNT IN THE NAME OF
8.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Rider C to the franchise agreement is a Bank Draft Authorization Form. This form authorizes Browns Chicken to draft funds from the franchisee's bank account. The form requires the franchisee to provide their store number, bank account number, and the name in which the bank account is held.
This agreement allows Browns Chicken to directly access funds from the franchisee's account, which is a fairly common practice in franchising for collecting royalties, advertising fees, and other payments. This system can streamline the payment process and ensure timely payments.
Prospective Browns Chicken franchisees should carefully review the terms outlined in Rider C and understand the amounts and frequency of payments that will be drafted from their account. It is important to ensure that sufficient funds are available in the account to avoid any penalties or disruptions to the franchise agreement.