Does Browns Chicken have sole discretion in approving a new location for a relocated Browns Chicken store?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Relocation. If Franchisee's lease for the Premises expires or terminates without fault of Franchisee, or if the Premises is damaged, condemned or otherwise rendered unusable, or if, in the judgment of Brown and Franchisee, there is a change in character of the location of the Store sufficiently detrimental to its business potential to warrant its relocation, Brown will grant permission for relocation of the Store to a location and premises approved by Brown, in its sole discretion. Any such relocation shall be at Franchisee's sole expense. Brown shall have the right to charge Franchisee for services Brown renders to Franchisee in connection with such relocation. Brown shall also have the right to require Franchisee to upgrade the relocated Store to conform to Brown's then current image, standards, and specifications for construction and equipment for all new BROWN's Stores.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken has sole discretion in approving a new location for a relocated store. Specifically, if a franchisee's lease expires, the premises are unusable, or Browns Chicken and the franchisee agree that the location's business potential has declined significantly, Browns Chicken will grant permission to relocate the store to a location approved by them in their sole discretion.
This means that while a franchisee may have reasons to relocate, the final decision on the new location rests entirely with Browns Chicken. The franchisee bears the full financial responsibility for the relocation. Browns Chicken also has the right to charge the franchisee for any services rendered during the relocation process.
Furthermore, Browns Chicken can require the franchisee to upgrade the relocated store to meet the current standards for new Browns Chicken stores. This could involve significant additional costs for construction and equipment. The franchisee must also remove all Browns Chicken branding from the former location and make any changes necessary to distinguish it from a Browns Chicken store to prevent public confusion. Failure to properly de-identify the former location can result in Browns Chicken revoking permission for the relocation and declaring a default under the franchise agreement.