Is the territorial protection granted to Browns Chicken franchisees dependent on any sales achievement or other contingency?

According to Browns Chicken's 2025 Franchise Disclosure Document, the territorial protection granted to franchisees is not dependent on sales achievements or other contingencies. Browns Chicken grants franchisees the right to operate a Browns Chicken store at a specific location and provides an exclusive territory, typically a geographic area within a 5-mile radius of the store. However, if the store is located in a shopping mall food court, the franchisee will not receive an exclusive territory.

This means that as long as the franchisee is in full compliance with the Franchise Agreement, Browns Chicken will not operate or grant a franchise for another Browns Chicken store within the defined territory. This provides a level of security for the franchisee, as they can expect to be the only Browns Chicken location in their area, fostering a stable customer base without direct competition from the same brand.

It is important to note that Browns Chicken retains certain rights, including the right to operate or grant franchises for Browns Chicken stores outside the franchisee's territory, regardless of proximity to the franchisee's store. This clause ensures that Browns Chicken can continue to expand its brand presence in other areas, which may be beneficial for brand recognition but could also lead to indirect competition if new locations are nearby. Franchisees should carefully consider the implications of these retained rights and assess the potential for future competition when evaluating the franchise opportunity.