Under what condition related to premises can Browns Chicken franchisees secure substitute premises?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon expiration of the initial term of the Franchise or any renewal term of the Franchise, if:
- a. Brown is then offering franchises for BROWN'S Stores in the state where the Store is located; and
- b. Franchisee has substantially complied with this Agreement (or the then-effective franchise agreement) during its term; and
- c. Franchisee is not in default under or in any violation of any term of any other franchise agreement, lease, or other agreement with Brown;
- d. Franchisee maintains possession of and remodels and/or expands the Premises, adds or replaces equipment, fixtures, furnishings, furniture and signs and otherwise modifies the Store to bring it into compliance with specifications and standards then applicable under new or renewal franchises for BROWN'S Stores; or if Franchisee is unable to maintain possession of the Premises, or in the judgment of Brown, the Store should be relocated. Franchisee has secured substitute premises in compliance with specifications and standards then applicable under new or renewal franchises for BROWN'S Stores; and
- e. Franchisee complies with Brown's then-current qualification and training requirements,
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, a franchisee may need to secure substitute premises under specific conditions related to the renewal of their franchise agreement. Specifically, if the franchisee is unable to maintain possession of their current premises, or if Browns Chicken determines that the store should be relocated, the franchisee must secure substitute premises to qualify for renewal. These substitute premises must comply with the specifications and standards applicable to new or renewal Browns Chicken franchises at that time.
This requirement ensures that Browns Chicken maintains consistent brand standards and operational quality across all its locations. For a franchisee, this means that the ability to renew their franchise is directly tied to their ability to either maintain their existing location in good condition or find a suitable alternative that meets Browns Chicken's current requirements. This could involve additional costs for relocation, construction, and upgrades to meet the latest brand standards.
The franchisee is responsible for all expenses associated with securing and preparing the substitute premises. Furthermore, Browns Chicken retains the right to approve the new location. This approval process ensures that the new site aligns with the brand's strategic objectives and market considerations. Failure to secure an approved substitute location could result in the non-renewal of the franchise agreement, highlighting the importance of proactive planning and communication with Browns Chicken regarding any potential issues with the existing premises.
In the event that a Browns Chicken franchisee loses possession of their store for any reason before their franchise agreement expires, they are required to diligently search for a new location and reopen the store as quickly as possible. Failure to do so could make the franchisee liable to Browns Chicken for lost royalties and other damages for the remainder of the franchise term. This clause underscores the importance of maintaining continuous operation and the potential financial repercussions of failing to do so.