What section of the Browns Chicken franchise agreement outlines restrictions upon the franchisee's channels of distribution?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Restrictions Upon Franchisee's Channels of Distribution.
Franchisee is restricted solely to the retail sale of products sold under this Agreement. Franchisee is expressly prohibited from engaging in the wholesale distribution of products under this Agreement. Franchisee is expressly prohibited from engaging in a catering service selling Branded Products under this Agreement, except under Brown's authorized Catering Program. Franchisee must offer their customers the option of purchasing products through Third-Party Delivery Services. Franchisee must apply and sign-up to participate in any Third-Party Delivery Service platform as required by Brown. Franchisee may not utilize any Third-Party Delivery Services except through a Third-Party Delivery Service group account that Brown designates and is established and controlled by Brown. The rights herein granted to Franchisee are specifically limited to the operation of business from the Store location.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the restrictions upon the franchisee's channels of distribution are outlined in Paragraph C, titled "Restrictions Upon Franchisee's Channels of Distribution."
This section of the franchise agreement specifies that franchisees are limited to retail sales of products sold under the agreement and are expressly prohibited from engaging in wholesale distribution. Furthermore, franchisees are prohibited from operating a catering service selling branded products, unless it's through Browns Chicken's authorized Catering Program.
The agreement also mandates that franchisees must offer customers the option to purchase products through Third-Party Delivery Services and must participate in any Third-Party Delivery Service platform as required by Browns Chicken. However, franchisees are restricted from using any Third-Party Delivery Services except through a group account designated, established, and controlled by Browns Chicken. The rights granted to the franchisee are specifically limited to operating the business from the store location.