What standards and requirements must suppliers meet to be approved by Browns Chicken?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ood And Beverage Products, Supplies and Materials.**
All food and beverage products, cooking materials, containers, packaging materials, other paper and plastic products, glassware, utensils, uniforms, menus, forms, cleaning and sanitation materials, and other materials and supplies used in the operation of the Store must conform to the standards and requirements Brown establishes from time to time. Brown has approved and will periodically approve types and/or brands of such products that meet its specifications, and suppliers and distributors of the foregoing products that meet its standards and requirements for suppliers, including standards and requirements relating to quality, prices, consistency, reliability, financial capability, labor relations and customer relations. Brown may from time to time modify its list of approved types and/or brands of products and of approved suppliers, and you must not (after receipt in writing of such modification) reorder any type or brand from any supplier which is no longer approved by Brown.
In order to obtain reduced margins, Brown has approved Wilkens Foodservice as the single distributor for all food, beverage, and dry goods products, other than bakery items. You must purchase all those items from Wilkens Foodservice. Wilkens Foodservice does not pay Brown
any rebates or other payments based on franchisee purchases. The contract with Wilkens Foodservice does not have a term. Upon termination of the contract with Wilkens Foodservice, Brown may approve one or more other distributors. Brown's approval may be conditioned on requirements relating to the frequency of delivery, standards of service, including prompt attention to complaints, or other criteria, and concentration of purchases, as set forth above, and may be temporary, pending a further evaluation of such distributor or other supplier by Brown.
Other than under our arrangement with Pepsi and Dr. Pepper/Seven Up, Inc. we do not currently derive any revenue or other material consideration from your purchases or leases from designated or approved suppliers, although we reserve the right to do so in the future.
There are currently 2 purchasing arrangements for franchisees. One is with Pepsi, which is an approved fountain beverage product supplier. Under the Pepsi agreement, you will have the right to purchase Pepsi fountain syrups from Wilkens at then-current published chain account prices, which prices are subject to change from time to time. The Pepsi agreement provides that Pepsi will pay a rebate into the Brown Advertising Fund based on Franchisees' purchases of Pepsi products. During the fiscal year 2024, Pepsi paid Brown rebates totaling $1,637 which was retained by Brown in its general operating budget.
A second purchasing arrangement is with Dr. Pepper/Seven Up, Inc., which is an approved fountain beverage product supplier. During the fiscal year 2024, Dr.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, suppliers of food, beverage, and other materials must meet standards and requirements related to quality, prices, consistency, reliability, financial capability, labor relations, and customer relations. Browns Chicken periodically approves types and brands of products that meet its specifications, as well as suppliers and distributors who meet the company's standards. Browns Chicken may modify its list of approved suppliers, and franchisees must stop reordering from any supplier that is no longer approved after receiving written notice.
If a franchisee wants to use a product or supplier not already approved by Browns Chicken, they must notify Browns Chicken and submit any information, specifications, and samples requested for examination and testing. Browns Chicken will then determine if the proposed product or supplier meets its standards. The approval process can take between 2 to 6 months, depending on the product, the supplier's responsiveness, and other factors. Browns Chicken may also prescribe procedures for submitting requests for approved products or suppliers and the obligations that approved suppliers must assume.
Browns Chicken has approved Wilkens Foodservice as the single distributor for all food, beverage, and dry goods products, except for bakery items, to obtain reduced margins. Franchisees must purchase these items from Wilkens Foodservice. Browns Chicken's approval of other distributors may be conditioned on requirements related to delivery frequency, service standards (including prompt attention to complaints), and concentration of purchases. These approvals may be temporary, pending further evaluation by Browns Chicken. Browns Chicken also provides a list of approved third-party food delivery services that franchisees may use, and these services must comply with Browns Chicken's standards for quality, speed, pricing, payment arrangements, and service.