Is Browns Chicken responsible for a site's failure to meet the prospective franchisee's expectations regarding revenue or operational criteria after Browns Chicken has approved the site?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ed, 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 the 2025 Browns Chicken Franchise Disclosure Document, Browns Chicken is not responsible if a location they approve fails to meet a prospective franchisee's expectations regarding revenue or operational criteria. Browns Chicken's approval only indicates that the location met their criteria at the time of evaluation.
The document states that demographic or economic factors can change after Browns Chicken approves a site, which could alter the site's potential. These factors are outside of Browns Chicken's control. The prospective franchisee acknowledges that their decision to operate a Browns Chicken store at the approved location is based on their own independent investigation of the site's suitability.
This means that while Browns Chicken will provide site selection criteria and inspect potential locations, the ultimate responsibility for assessing the location's viability rests with the franchisee. A prospective franchisee should conduct thorough due diligence, including market research and financial projections, to determine if the site is likely to meet their expectations. Browns Chicken explicitly disclaims any representation or warranty regarding the suitability of the premises.