conditional

Does Rider G impose any specific obligations on the Browns Chicken franchisee related to Video Gaming?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

ly in accordance with the terms of the Use Agreement, and Franchisee shall be prohibited from operating any Video Gaming activities at Franchisee's Store.

    1. Franchisee is not acquiring any territorial rights in connection with its Video Gaming activities, as it relates to the consent by Franchisor to any other Brown's franchisee to offer Video Gaming, or to Video Gaming that may be offered by any owner or officer of Brown in any business owned or operated by such owner or officer.
    1. Franchisee shall report to its insurance carrier the presence of Video Gaming at Franchisee's Store, and shall obtain and maintain liability insurance in an amount that Brown determines is reasonably necessary.
    1. Franchisee indemnifies Franchisor against any claim, cost, damage, loss, or cause of action that may be brought against Franchisor arising out of the Video Gaming activities in Franchisee's Store.
    1. This Rider G is not assignable by Franchisee under any circumstances, even if Franchisee's Franchise Agreement is assigned. The reason for this provision is that Section 50(c) of the Act provides that no license issued under the Act is transferable or assignable.
    1. Franchisee shall take all steps required to maintain Franchisee's Store as a Licensed Establishment.
    1. So long as Franchisee's Store is a Licensed Establishment, Franchisee shall operate all the Video Gaming Terminals during all the legal hours of operation as described in Paragraph 13 above. The only exception to this obligation is in the event Franchisee requests, and Brown consents in writing to such request, for a partial or complete cessation of Video Gaming at Franchisee's Store.
    1. No other terms, provision, obligation, or covenant in the Franchise Agreement shall be affected by this Rider G.

IN WITNESS WHEREOF, the parties hereto have executed this Rider as of the day and year first above written.

BROWN'S CHICKEN, LLC an Illinois limited liability company a corporation

Schedule "A"

Definition of "Video Gaming"

"Video Gaming" is an activity that is regulated by the Illinois Video Gaming Act (the "Act"), 230 ILCS 40/1, et. seq. and is supervised by the Illinois Gaming Board, as authorized by Section 78 of the Act. Video Gaming consists of the installation by a licensed "Terminal Operator" of up to five (5) Video Gaming Terminals in a "Licensed Establishment."

"Video Gaming Terminals," as defined by Section 5 of the Act, are any electronic video game machine that, upon insertion of cash, electronic cards or vouchers, or any combination thereof, is available to play or simulate the play of a video game, including but not limited to video poker, line up, and blackjack, utilizing a video display and microprocessors in which the player may receive free games or credits that can be redeemed for cash.

"Players" are individuals aged twenty-one (21) years and older who enter a Licensed Establishment and engage in Video Gaming by inserting cash or credit cards into a Video Gaming Terminal, for the purposes of entertainment and/or winning money (deriving more money than the amount inserted into the Video Gaming Terminal).

EXHIBIT G

Sublease and Guaranty and Assumption of Obligations under Sublease

BROWN'S CHICKEN, LLC STANDARD SUBLEASE

This Sublease made and entered into this of, 20 , by and between Brown's Chicken, LLC, an Illinois Brown's Chicken, LLC (hereinafter sometimes referred to as "Sublessor" or "Tenant", as the context requires), and (hereinafter referred to as "Sublessee").

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to Browns Chicken's 2025 Franchise Disclosure Document, Rider G, the Video Gaming Rider, outlines several obligations for franchisees who offer video gaming at their locations. Browns Chicken may require franchisees to offer video gaming in their stores, and if so, Rider G will be executed. To participate in video gaming, franchisees must possess a license to sell alcoholic beverages.

The franchisee is required to report the presence of video gaming to their insurance carrier and maintain adequate liability insurance as determined by Browns Chicken. The franchisee must also indemnify Browns Chicken against any claims arising from the video gaming activities at their store. The franchisee is responsible for maintaining their store as a licensed establishment and operating the video gaming terminals during all legal hours of operation, unless Browns Chicken provides written consent for a cessation of video gaming. The franchisee must construct a separate gaming area within the store, adhering to the Illinois Video Gaming Act, and restrict access to individuals 21 years of age and older.

Additionally, the franchisee must ensure that a manager or employee over 21 is present and has the gaming area within view during all hours of operation. They must also maintain an adequate video gaming fund as determined by the Board. The franchisee is not granted any territorial rights related to video gaming, meaning Browns Chicken can allow other franchisees or its own officers to offer video gaming in other businesses. Violation of Rider G or the Franchise Agreement can lead to termination of Rider G, with a ten-day notice, unless the franchisee's license is revoked, in which case termination is immediate. Upon termination of Rider G, all video gaming equipment must be removed, and the franchisee is prohibited from operating any video gaming activities at the store.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.