Does Rider G specify any additional fees for Browns Chicken franchisees to offer Video Gaming?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
use one or more additional or substitute trademarks or service marks, within a reasonable time after notice thereof by Brown. Franchisee shall be responsible for the expenses to modify or discontinue the use of a Mark and/or to substitute a trademark or service mark for a discontinued Mark.
18. INITIAL FRANCHISE FEE.
Franchisee shall pay to Brown a non-recurring and non-refundable initial franchise fee for the Franchise in the amount of Twenty-Five Thousand Dollars ($25,000.00), Fifteen Thousand Dollars ($15,000.00) of which shall be payable upon the signing of the Preliminary Agreement by Franchisee, with the balance due and payable prior to the opening of the Store. The initial franchise fee will be fully earned by Brown upon execution of this Agreement, and non-refundable, provided that if Brown elects to terminate the Franchise due to the failure of Franchisee to satisfactorily complete the training program, Brown shall refund to Franchisee any payments made of the initial franchise fee, less the expenses theretofore incurred by Brown in connection with the grant of the Franchise to Franchisee and the training of Franchisee and its designees.
19. ROYALTY FEE AND OTHER PAYMENTS.
A. Amount and Payment of Royalty Fee.
Franchisee agrees to pay to Brown a weekly royalty fee of five
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Rider G addresses video gaming and its associated fees. While the initial franchise fee is $25,000, with $15,000 payable upon signing the Preliminary Agreement, this fee is not specific to video gaming. However, the standard royalty fee is 5% of gross sales, but revenue from video gaming is subject to a 10% royalty fee.
This means that Browns Chicken franchisees who choose to offer video gaming at their locations will pay a higher royalty fee on the revenue generated from those games compared to their regular food and beverage sales. This increased royalty is a key consideration for franchisees evaluating the potential profitability of adding video gaming to their business.
The document specifies that the 10% royalty fee for video gaming revenue is detailed in Exhibit G, which is the Sublease and Guaranty and Assumption of Obligations under Sublease. This indicates that the financial obligations related to video gaming are clearly outlined in a separate exhibit, ensuring transparency for the franchisee. Franchisees should carefully review Exhibit G to fully understand the financial implications of offering video gaming at their Browns Chicken franchise.