Does Browns Chicken have the right to charge franchisees for relocation services?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Relocation. If Franchisee's lease for the Premises expires or terminates without fault of Franchisee, or if the Premises is damaged, condemned or otherwise rendered unusable, or if, in the judgment of Brown and Franchisee, there is a change in character of the location of the Store sufficiently detrimental to its business potential to warrant its relocation, Brown will grant permission for relocation of the Store to a location and premises approved by Brown, in its sole discretion. Any such relocation shall be at Franchisee's sole expense. Brown shall have the right to charge Franchisee for services Brown renders to Franchisee in connection with such relocation. Brown shall also have the right to require Franchisee to upgrade the relocated Store to conform to Brown's then current image, standards, and specifications for construction and equipment for all new BROWN's Stores.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken does have the right to charge franchisees for services rendered in connection with the relocation of a store. The FDD specifies that if a franchisee's lease expires or terminates without their fault, or if the premises become unusable, Browns Chicken may permit relocation to a new approved location.
However, the relocation is at the franchisee's sole expense. Browns Chicken retains the right to charge for any services they provide to the franchisee during the relocation process. Additionally, Browns Chicken can require the franchisee to upgrade the relocated store to meet the current standards for new Browns Chicken stores.
This means that franchisees need to be prepared to cover all costs associated with relocating, including potential fees from Browns Chicken for their assistance and any required upgrades to the new location. Franchisees should clarify with Browns Chicken what specific services they might charge for during a relocation and get an estimate of those costs to adequately plan for such a scenario.