Can Browns Chicken receive credits, rebates, or other incentives from suppliers based on sales to Browns Chicken franchisees?

According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken periodically may make available to franchisees goods, products, and/or services for use in the franchisee's store, on the sale of which Browns Chicken may make a profit and/or receive a credit, rebate, or other incentive. Browns Chicken periodically may receive consideration (including credits, rebates, and incentives) from suppliers and manufacturers respecting sales of goods, products, or services to the franchisee or in consideration for products or services provided or rights licensed to such persons; and the franchisee agrees that Browns Chicken will be entitled to such profits and consideration.

This means that Browns Chicken has the right to negotiate and receive financial benefits such as credits, rebates, or other incentives from suppliers based on the volume of sales those suppliers make to Browns Chicken franchisees. These incentives are for the benefit of Browns Chicken, not the franchisee.

For a prospective franchisee, this arrangement means that Browns Chicken may be incentivized to choose certain suppliers or products over others, potentially impacting the franchisee's costs or product offerings. While the FDD states that Browns Chicken aims to maintain high standards of quality and service, the potential for Browns Chicken to profit from supplier incentives introduces a possible conflict of interest. Franchisees should consider this when evaluating the overall cost structure and supplier relationships within the Browns Chicken franchise system.