Does Browns Chicken have sole discretion in approving a relocation?
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 relocation. The document states that if a franchisee's lease expires, the premises are damaged, or if Browns Chicken and the franchisee agree that the location is detrimental to the business, Browns Chicken will grant permission for relocation to a location approved by them in their sole discretion.
This means that while a franchisee may have valid reasons for wanting to relocate their Browns Chicken store, the final decision rests solely with the franchisor. Browns Chicken can deny a relocation request even if the franchisee believes it is necessary for the business's survival or growth. This gives Browns Chicken significant control over the location of its franchises and allows them to ensure that all locations meet their standards and strategic goals.
The franchisee is responsible for all expenses associated with the relocation. Browns Chicken also has the right to charge the franchisee for any services they render during the relocation process. Furthermore, Browns Chicken can require the franchisee to upgrade the relocated store to meet the current image, standards, and specifications for new Browns Chicken stores. This could involve significant additional costs for the franchisee.
Before relocating, the franchisee must remove all signs, fixtures, and materials displaying Browns Chicken's marks from the former location. The franchisee must also modify the former premises to clearly distinguish it from its previous appearance as a Browns Chicken store to prevent public confusion. Failure to comply with these requirements can result in Browns Chicken revoking permission for the relocation and declaring a default under the Franchise Agreement.