What is the role of Brown in approving the transfer of a Browns Chicken franchise after the death or disability of the franchisee?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or permanent disability of Franchisee, or, if Franchisee is a corporation or partnership, upon the death or permanent disability of the owner of a controlling interest in Franchisee, the executor, administrator, conservator, guardians or other personal representative of such person shall transfer his interest in this Agreement and the Franchise, or such interest in Franchisee, to a third party approved by Brown.
Such disposition of this Agreement and the Franchise, or such interest in Franchisee (including, without limitation, transfer by bequest or inheritance), shall be completed within a reasonable time, not to exceed six (6) months from the date of death or permanent disability and shall be subject to all the terms and conditions applicable to transfers contained in this Section 22.
Failure to so dispose of this Agreement and the Franchise, or such interest in Franchisee, within said period of time shall constitute a breach of this Agreement.
Franchisee agrees to provide Brown with monthly written reports of progress toward effecting the transfer, from the date of death or disability until the transfer is completed.
- (2) Operation After Death or Permanent Disability.
Upon the death or permanent disability of Franchisee or the owner of a controlling interest in Franchisee, the executor, administrator, conservator, guardian or other personal representative of such person shall appoint a manager to operate the Store within a reasonable time, not to exceed thirty (30) days from the date of death or permanent disability of such person.
The appointment of such manager shall be subject to the prior written approval of Brown and, if requested by Brown, such manager shall attend and complete Brown's training program for franchisees.
Such manager shall execute Brown's then-current form of Confidentiality and Non-Competition Agreement.
If in the judgment of Brown, the Store is not being managed properly after the death or permanent disability of Franchisee or the owner of a controlling interest in Franchisee, Brown shall have the right to appoint a manager for the Store to manage the Store for up to thirty (30) days.
During that period, Franchisee shall either cause its manager to attend additional training, or appoint another manager.
If Franchisee fails to do so, Brown may terminate this Agreement.
Brown shall periodically discuss the status with the Franchisee or the Franchisee's representative during such period of interim management.
All funds from the operation of the Store during the management by Brown's appointed manager will be kept in a separate bank account, and all expenses of the Store including compensation, other costs, and travel and living expenses of Franchisee's manager will be charged to this account.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee, the executor, administrator, conservator, guardian, or other personal representative is required to transfer the franchisee's interest in the Franchise Agreement to a third party approved by Browns Chicken. This transfer must be completed within six months of the date of death or permanent disability. The franchisee's representative must also provide Browns Chicken with monthly written reports on the progress of the transfer.
Browns Chicken also has the right to approve the manager appointed to operate the store following the death or disability of the franchisee. This manager may be required to attend and complete Browns Chicken's training program for franchisees, if requested by Browns Chicken. The appointed manager must also execute Browns Chicken's then-current Confidentiality and Non-Competition Agreement.
If Browns Chicken determines that the store is not being managed properly, they have the right to appoint a manager for up to 30 days. During this period, the franchisee must either have their manager attend additional training or appoint a new manager. Failure to comply may result in the termination of the Franchise Agreement. All funds from the store's operation during this interim management will be kept in a separate bank account, covering all store expenses, including compensation, costs, and travel expenses of the franchisee's manager.