Does Browns Chicken have the right to terminate the franchise agreement without cause?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| (e) Termination by Franchisor | None | No specific provision. |
| without cause | ||
| (f) Termination by Franchisor with cause | 20B and 21D | Brown can terminate the Franchise if you default under any agreement; upon termination of the Franchise, any sublease from Brown will terminate, and you may be required to assign your lease to Brown. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–38)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken does not have the right to terminate the franchise agreement without cause. Item 17 details the conditions for termination of the franchise agreement. Specifically, under the table outlining provisions in the Franchise Agreement, section (e) addresses termination by the franchisor without cause, and the summary states, "No specific provision." This indicates that the Franchise Agreement does not contain a clause allowing Browns Chicken to terminate the agreement without a stated reason or breach of contract by the franchisee.
However, Browns Chicken can terminate the Franchise Agreement with cause, as detailed in Section 20B and 21D. This includes instances where the franchisee defaults under any agreement. Upon termination, any sublease from Browns Chicken will terminate, and the franchisee may be required to assign their lease to Browns Chicken.
Prospective franchisees should note that while Browns Chicken cannot terminate the agreement without cause, there are numerous conditions under which Browns Chicken can terminate the agreement with cause. It is important to carefully review Sections 20B and 21D of the Franchise Agreement to understand what constitutes a default and the circumstances under which Browns Chicken can terminate the franchise.