What is the standard geographic radius for the exclusive territory granted to Browns Chicken franchisees?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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Item 12 TERRITORY
Under the Franchise Agreement Brown grants you the right to operate a BROWN'S Store at a specific location. You will receive an exclusive territory (the "Territory") that will consist of the geographic area that is within a 5-mile radius (as the crow flies) of your Store, unless you are
located in a shopping mall food court in which event you will not receive an exclusive territory. The site of your Store will be inserted in the Franchise Agreement before you sign it, unless the site is not determined when you sign the Franchise Agreement. Except as described below, if you are in full compliance with the Franchise Agreement, Brown will not operate or grant a franchise for the operation of a BROWN's Store within the Territory.
The territorial protection granted under the Franchise Agreement is not dependent upon any sales achievement or any other contingency.
Location and Relocation of Store.
The Franchise Agreement provides that you may operate the Store only at the location and on the Premises or a substitute location and/or premises subsequently approved by Brown. If your lease for the Premises expires or terminates without your fault, or if the Premises is destroyed, condemned or otherwise rendered unusable, or if in the judgment of Brown and you 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 will be at your sole expense. So long as your substitute location is open and operating within 18 months of the closing of the Store at the Premises, and such substitute location is owned and operated by you or your immediate family members, Brown will consider such relocation to be under the same Franchise Agreement. Otherwise, Brown reserves the right to require you to enter into a new Franchise Agreement and to pay an additional initial franchise fee upon relocation.
Except as limited by your Franchise Agreement, Brown retains all rights with respect to BROWN's Stores, the Marks, and the sale of goods and services including the right to operate or grant to others the right to operate BROWN'S Stores anywhere outside the Territory regardless of its proximity to your Store and on such terms as we deem appropriate.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees typically receive an exclusive territory. This territory is defined as the geographic area within a 5-mile radius of the Browns Chicken store, measured as the crow flies. This means that, under normal circumstances, Browns Chicken will not operate or franchise another Browns Chicken store within that 5-mile radius during the term of the Franchise Agreement, provided the franchisee remains in full compliance with the agreement.
However, there is a notable exception to this territorial exclusivity. If the Browns Chicken store is located within a shopping mall food court, the franchisee will not receive any exclusive territory. This is a significant factor for prospective franchisees to consider, as it directly impacts the level of competition they may face.
The territorial protection granted to Browns Chicken franchisees is not contingent upon sales achievements or any other performance-based metrics. The Franchise Agreement specifies that the franchisee may only operate the store at the approved location. Relocation is possible under certain circumstances, such as lease expiration, premises destruction, or a detrimental change in the location's business potential, subject to Browns Chicken's approval. Any relocation will be at the franchisee's expense. Browns Chicken retains the right to operate or franchise other Browns Chicken stores outside the franchisee's territory, regardless of proximity.