What specific banking changes require prior written approval from Browns Chicken?

According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees must obtain prior written approval from Browns Chicken before making certain changes to their banking relationships. Specifically, a franchisee needs approval before making any change in its banking relationships, including any change in the account number of its general operating account, or any change in banks.

This requirement allows Browns Chicken to maintain control over the financial aspects of its franchise operations. Browns Chicken uses electronic bank drafts to collect royalty fees, advertising fund contributions, and payments for miscellaneous items. The franchise agreement outlines a process where Browns Chicken can withdraw estimated amounts for royalty and advertising fees if a franchisee fails to submit required reports. If a franchisee changes banks or account numbers without approval, it could disrupt these automatic payments.

This stipulation is not uncommon in franchising, as franchisors often require a degree of financial oversight to protect their brand and ensure consistent revenue streams. Franchisees should factor in this requirement when managing their business finances and plan ahead for any necessary banking changes to avoid potential disruptions or penalties, such as the $50 processing fee for declined electronic bank drafts due to insufficient funds.