Under what circumstances will the Use Agreement for a Browns Chicken franchisee be subject to immediate termination?

According to Browns Chicken's 2025 Franchise Disclosure Document, a Use Agreement, pertaining to video gaming terminals in a franchisee's store, can face immediate termination if the franchisee's license as a Licensed Establishment is revoked. This condition is included to protect Browns Chicken from potential legal or reputational risks associated with a franchisee operating video gaming activities without the necessary licenses.

Specifically, Browns Chicken requires that any agreement between a franchisee and a terminal operator include a provision that allows for termination with ten days' notice if the franchisee violates the Rider G or the Franchise Agreement. However, the exception to the ten-day notice is if the franchisee's license as a Licensed Establishment is revoked. In that case, the Use Agreement is subject to immediate termination.

This stipulation ensures that Browns Chicken can promptly cease any association with a franchisee who loses their license, thereby mitigating any potential damage to the brand's image or legal standing. For a prospective franchisee, this highlights the importance of maintaining all required licenses and adhering to the terms of both the Franchise Agreement and Rider G to avoid the immediate termination of the Use Agreement and potential disruption of video gaming activities at their Browns Chicken location.