Under what circumstances can Browns Chicken terminate the Video Gaming Rider?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisee violates any provision of Rider G or any provision of this Franchise Agreement, Franchisor shall have the right to terminate Rider G. Franchisor shall give Franchisee ten (10) days prior notice of termination of Rider G, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event Franchisor may terminate Rider G immediately effective upon revocation of Franchisee's State License. Franchisee will require that any agreement with a terminal operator regarding video gaming in Franchisee's Store (a "Use Agreement") contain a provision stating that such Use Agreement is subject to termination on ten (10) days prior notice in the event that Franchisee exercises the termination right described herein, unless the violation is the revocation of Franchisee's license as a Licensed Establishment, in which event the Use Agreement will be subject to immediate termination. If Franchisor terminates Rider G, all video gaming terminals and other equipment shall be removed promptly in accordance with the terms of the Use Agreement, and Franchisee shall be prohibited from operating any Video Gaming activities at Franchisee's Store.
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 Rider G, which pertains to video gaming, under specific circumstances. Browns Chicken can terminate Rider G if the franchisee violates any provision outlined in Rider G itself or any provision within the broader Franchise Agreement.
In most cases of violation, Browns Chicken is required to provide the franchisee with a ten-day prior written notice of termination. This allows the franchisee a period to rectify the violation. However, there is a notable exception to this notice period.
If the franchisee's license as a Licensed Establishment is revoked, Browns Chicken has the right to terminate Rider G immediately, effective upon the revocation of the franchisee's state license. In the event of termination, the franchisee is responsible for promptly removing all video gaming terminals and related equipment in accordance with the terms of their Use Agreement. Furthermore, the franchisee is then prohibited from operating any video gaming activities at their Browns Chicken store.