What section of the Browns Chicken Franchise Agreement outlines the franchisee's obligations related to post-termination?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
a default under any and all other agreements entered into between Brown and Franchisee (or related entities, of which any one or more parties, whether individual, corporate or otherwise, is a party to or guarantor of said other agreement), with the right to terminate the other agreement(s) in accordance with the provisions of those agreement(s).
21. FRANCHISEE'S OBLIGATIONS UPON TERMINATION OR EXPIRATION.
A. Payment of Amounts Owed to Brown.
Upon termination or expiration of the Franchise, Franchisee agrees to pay to Brown and its affiliated companies, within fifteen (15) days after the effective date of termination or expiration, such royalties and service fees, advertising contributions, rent, if applicable, and other charges (including interest on past due amounts) as have or will thereafter become due to Brown or any affiliated company and are then unpaid.
B. Confidential Information.
Franchisee agrees that upon termination or expiration of the Franchise, it will immediately cease to use any Confidential Information of Brown disclosed to Franchisee pursuant to this Agreement in any business or otherwise and will return to Brown all copies of the Operating Manual and other confidential materials which have been lent to it by Brown.
C. Cancellation Of Assumed Names/Transfer of Telephone Numbers.
Franchisee agrees that after the termination or expiration of the Franchise he will: (1) not directly or indirectly at any time or in any manner identify himself or any business as a current or former BROWN'S Store, or as a franchisee or licensee of or as otherwise associated with Brown, or use any Mark or any colorable imitation thereof in any manner or for any purpose, or utilize for any purpose any trade name, trademark or service mark or other commercial symbol that suggests or indicates a connection or association with Brown; (2) remove all signs containing any Mark and return to Brown or destroy all menus and other forms and materials containing any Mark or otherwise identifying or relating to a BROWN'S Store; (3) remove all Marks affixed to uniforms and/or, at Brown's direction, cease to use such uniforms; (4) take such action as may be required to cancel all fictitious or assumed names or equivalent registrations relating to his use of any Mark;
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 23–24)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Section 21 of the Franchise Agreement details the franchisee's obligations upon termination or expiration of the franchise. These obligations cover various aspects, including payment of outstanding amounts, handling of confidential information, and restrictions on competition.
Specifically, upon termination or expiration, the franchisee must pay all outstanding royalties, service fees, advertising contributions, rent (if applicable), and other charges to Browns Chicken within fifteen days. The franchisee is also required to cease using any confidential information and return all copies of the operating manual and other confidential materials.
Furthermore, the agreement includes a restriction on competition. For a period of 18 months after termination or expiration, the franchisee is prohibited from engaging in a retail food service business featuring cooked chicken, pasta, or sandwiches within five miles of the former Browns Chicken location or any other Browns Chicken store. This restriction extends to owning, operating, or being involved in any capacity with such a business, as well as leasing property to any entity engaged in a similar business. These post-termination obligations are designed to protect Browns Chicken's interests and maintain the integrity of its brand and market presence.