Is there an initial franchise fee for the Browns Chicken Video Gaming Rider?

According to Browns Chicken's 2025 Franchise Disclosure Document, there is no initial franchise fee for the Video Gaming Rider. However, franchisees should be aware of other fees associated with video gaming.

The Video Gaming Rider requires franchisees to report the presence of video gaming to their insurance carrier and maintain adequate liability insurance as determined by Browns Chicken. Franchisees must also indemnify Browns Chicken against any claims arising from the video gaming activities at their store. This rider is not assignable under any circumstances, even if the Franchise Agreement is assigned, due to restrictions under the Illinois Video Gaming Act.

Browns Chicken franchisees are obligated to maintain their store as a Licensed Establishment and operate the Video Gaming Terminals during all legal hours of operation, unless Browns Chicken provides written consent for a cessation of video gaming. While there is no initial fee, the royalty fee on revenue from video gaming is 10%, which is higher than the 5% royalty fee for food sales. Additionally, franchisees pay 4% of gross sales from video gaming for advertising.

The estimated initial investment for build-out of a video gaming area ranges from $0 to $2,000. This cost is paid to a contractor as incurred. Browns Chicken franchisees should consider these ongoing fees and obligations when deciding to add video gaming to their franchise.