What is Rider G of the Browns Chicken franchise agreement conditional upon?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Franchisor gives its conditional consent to Franchisee to offer Video Gaming at Franchisee's Store, on the terms and conditions of this Rider G. In consideration of the mutual and several covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledge, the parties hereto agree as follows:
- Franchisor hereby consents to Franchisee's offering Video Gaming, as that term is defined on attached Schedule "A," at Franchisee's Store, on the terms and conditions of this Rider G.
In the event Franchisee violates any provision of Rider G or any provision of this Franchise Agreement, Franchisor shall have the right to terminate Rider G. Franchisor shall give Franchisee ten (10) days prior notice of termination of Rider G, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event Franchisor may terminate Rider G immediately effective upon revocation of Franchisee's State License. Franchisee will require that any agreement with a terminal operator regarding video gaming in Franchisee's Store (a "Use Agreement") contain a provision stating that such Use Agreement is subject to termination on ten (10) days prior notice in the event that Franchisee exercises the termination right described herein, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event the Use Agreement will be subject to immediate termination. If Franchisor terminates Rider G, all video gaming terminals and other equipment shall be removed promptly in accordance with the terms of the Use Agreement, and Franchisee shall be prohibited from operating any Video Gaming activities at Franchisee's Store.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Rider G pertains to the franchisee's ability to offer video gaming at their store. Browns Chicken gives conditional consent for the franchisee to offer video gaming at their store, but this is subject to the terms and conditions outlined in Rider G.
Browns Chicken retains the right to terminate Rider G if the franchisee violates any provision within Rider G itself or any other part of the Franchise Agreement. In most cases, Browns Chicken will provide a ten-day notice before terminating Rider G. However, if the franchisee's license as a Licensed Establishment is revoked by the state, Browns Chicken can terminate Rider G immediately upon that revocation.
If Rider G is terminated, the franchisee must promptly remove all video gaming terminals and equipment according to the terms of their Use Agreement with the terminal operator. The franchisee will then be prohibited from operating any video gaming activities at the Browns Chicken store. The franchisee is also responsible for ensuring that any agreement with a terminal operator includes a clause allowing termination of the agreement with ten days' notice if Browns Chicken exercises its termination right, or immediately if the franchisee's license is revoked.