What is Browns Chicken's responsibility regarding the suitability of the premises for a Browns Chicken store?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
duration and other lease terms and conditions for the Store.
- c. Upon execution of this Agreement, BROWN will furnish PROSPECTIVE FRANCHISEE in writing criteria for site selection, which materials must be returned to BROWN upon termination of this Agreement.
- d. If PROSPECTIVE FRANCHISEE shall be unable to locate an acceptable site within the time above specified, BROWN may, at any time thereafter, terminate this Preliminary Agreement provided it shall refund a portion of the Deposit as provided in Paragraph 6 below.
- e. PROSPECTIVE FRANCHISEE acknowledges and agrees that BROWN's approval of the premises for the Store and any information communicated to PROSPECTIVE FRANCHISEE regarding the premises for the Store do not constitute a representation or warranty of any kind, expressed or implied, as to the suitability of the premises for a Brown's Store or for any other purpose. BROWN's approval of the premises indicates only that BROWN believes that the premises falls within the acceptable criteria established by BROWN as of the time period encompassing the evaluation. Both PROSPECTIVE FRANCHISEE and BROWN acknowledge that application of criteria that have been effective with respect to other sites and premises may not be predictive of potential for all sites and premises and that, subsequent to BROWN's approval 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.
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the prospective franchisee is responsible for independently investigating the suitability of the premises for a Browns Chicken store. Browns Chicken will provide written criteria for site selection upon execution of the agreement. The prospective franchisee must locate a site acceptable to Browns Chicken within sixty days. Browns Chicken agrees to inspect sites proposed by the prospective franchisee.
Browns Chicken's approval of a site only indicates that it believes the premises meet its established criteria at the time of evaluation. However, Browns Chicken does not guarantee the site's suitability or potential for revenue or operational success. Demographic and economic factors can change, and the application of criteria effective for other locations may not accurately predict the potential of all sites.
The document emphasizes that Browns Chicken is not responsible if a site it approves fails to meet the prospective franchisee's expectations regarding revenue or operational criteria. The prospective franchisee acknowledges that their decision to operate a Browns Chicken store at the premises is based on their own independent investigation of the site's suitability.