What section of the Browns Chicken franchise agreement outlines the franchisee's obligations upon termination or expiration?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Section 21 of the franchise agreement details the franchisee's obligations upon termination or expiration of the franchise agreement. These obligations cover various aspects, including financial responsibilities, handling of confidential information, and the cancellation or transfer of assumed names and telephone numbers.
Specifically, upon termination or expiration, a Browns Chicken franchisee must pay all outstanding royalties, service fees, advertising contributions, rent (if applicable), and other charges to Browns Chicken and its affiliated companies within fifteen days of termination or expiration. The franchisee is also required to cease using any confidential information and return all copies of the operating manual and other confidential materials provided by Browns Chicken.
Additionally, the Browns Chicken franchisee must take necessary steps to cancel any assumed names and transfer telephone numbers as directed by Browns Chicken. These post-termination obligations are designed to protect Browns Chicken's interests and ensure a smooth transition following the end of the franchise relationship.