Under what circumstances related to training program completion can the Browns Chicken franchise agreement be terminated?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to the opening of the Store, Brown shall furnish, and Franchisee (or if Franchisee is a corporation or partnership, a shareholder or partner designated by Franchisee), one co-manager, and one part-time manager shall attend and complete to Brown's satisfaction, a mandatory training program consisting of classroom and "on-the-job" instruction in the operation of a BROWN'S Store, furnished at such time and place as Brown may designate. If Brown reasonably determines that Franchisee is unable to satisfactorily complete the training program, Brown shall have the right to terminate this Agreement, effective upon delivery of written notice of termination to Franchisee. If this Agreement is so terminated by Brown, then upon execution by Franchisee and delivery to Brown of all assignments, releases, waivers, and other documents required to fully rescind any and all agreements, purchases and leases between Brown and Franchisee, Brown shall refund to Franchisee all sums paid by Franchisee to Brown pursuant to this Agreement, less expenses incurred by Brown in connection with the grant of the Franchise to Franchisee and the training of Franchisee and Franchisee's designees.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Browns Chicken has the right to terminate the franchise agreement if the franchisee, or their designated co-manager and part-time manager, fails to satisfactorily complete the mandatory training program. This program includes both classroom and on-the-job instruction. The training is to be completed to Browns Chicken's satisfaction prior to the store opening.
If Browns Chicken determines that the franchisee cannot satisfactorily complete the training, they can terminate the agreement by providing written notice. Upon termination, the franchisee must provide all required assignments, releases, waivers, and other documents to fully rescind all agreements, purchases, and leases between Browns Chicken and the franchisee.
In the event of termination due to unsatisfactory completion of the training program, Browns Chicken will refund the franchisee all sums paid under the agreement, less any expenses incurred by Browns Chicken related to granting the franchise and training the franchisee and their designees. This clause protects Browns Chicken by allowing them to end the agreement if the franchisee is not adequately prepared, while also providing some financial recourse to the franchisee, albeit with deductions for expenses already incurred by Browns Chicken.