Under what circumstances will Browns Chicken grant permission for relocation of the store?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken will grant permission for relocation of the store under specific circumstances. Browns Chicken will allow relocation if the franchisee's lease expires or terminates without fault, or if the premises are damaged, condemned, or otherwise rendered unusable. Additionally, relocation is possible if Browns Chicken and the franchisee agree that there is a change in the location's character that is sufficiently detrimental to the business's potential.
Browns Chicken retains sole discretion in approving the new location and premises. The franchisee is responsible for all expenses associated with the relocation. Browns Chicken also has the right to charge the franchisee for services rendered during the relocation process. Browns Chicken can also require the franchisee to upgrade the relocated store to meet the current image, standards, and specifications for new Browns Chicken stores.
If the substitute location opens and operates within 18 months of the original store's closing and is owned and operated by the franchisee or their immediate family, Browns Chicken will consider the relocation under the same Franchise Agreement. Otherwise, Browns Chicken reserves the right to require a new Franchise Agreement and an additional initial franchise fee upon relocation. The franchisee must also remove all signs and materials displaying Browns Chicken's marks from the former premises and make necessary alterations to distinguish it from other Browns Chicken stores to prevent public confusion. Failure to properly de-identify the former store can result in Browns Chicken revoking permission for relocation and declaring a default under the Franchise Agreement.