Under what condition can Browns Chicken require a franchisee to modify or discontinue the use of a Mark?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If it becomes advisable at any time in Brown's sole judgment for Franchisee to modify or discontinue use of any Mark and/or use of one or more additional or substitute trademarks or service marks, Franchisee agrees to comply with Brown's directions to modify or otherwise discontinue the use of such Mark, and/or use one or more additional or substitute trademarks or service marks, within a reasonable time after notice thereof by Brown. Franchisee shall be responsible for the expenses to modify or discontinue the use of a Mark and/or to substitute a trademark or service mark for a discontinued Mark.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken has the authority to direct a franchisee to modify or discontinue the use of any Mark. This can occur if Browns Chicken, in its sole judgment, deems it advisable for the franchisee to modify or discontinue using a particular Mark, or to use additional or substitute trademarks or service marks.
This provision grants Browns Chicken broad discretion over its brand and trademarks. The franchisee must comply with Browns Chicken's directions within a reasonable time after receiving notice. However, the franchisee is responsible for all expenses associated with modifying or discontinuing the use of a Mark, as well as for the costs of substituting a new trademark or service mark for the discontinued one.
For a prospective Browns Chicken franchisee, this means that the branding and marketing materials they initially invest in could be subject to change at their own expense if Browns Chicken decides to rebrand or modify its Marks. This is a potential risk, as it could lead to unexpected costs and the need to update signage, menus, and other branded materials. It is important for franchisees to factor in this potential expense when evaluating the overall cost of the franchise.