Under what legal conditions can Browns Chicken establish maximum, minimum, or other pricing requirements for Browns Chicken franchisees?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
maximum prices on products and services offered from the Store. If
Brown has imposed such a maximum price on a particular product or service Franchisee may charge any price for such product or service up to and including the maximum price set by Brown. Notwithstanding the foregoing, Brown reserves the right, to the fullest extent allowed by applicable law, to establish maximum, minimum, or other pricing requirements with respect to the prices Franchisee may charge for products and services.
K. Cooperation in Displaying Brown's Franchise Literature.
Franchisee agrees to cooperate with Brown in displaying Brown's franchise literature by keeping stocked display racks in Franchisee's Store with literature furnished by Brown. At no charge to Franchisee, Brown will install the display racks and furnish the franchise literature.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken reserves the right to establish maximum, minimum, or other pricing requirements for the prices franchisees may charge for products and services, to the fullest extent allowed by applicable law.
Browns Chicken may also advise or offer guidance to franchisees regarding prices for products and services, based on their experience and analysis of costs and competitive prices. Browns Chicken may also set maximum prices on products and services offered from the store.
This means that while Browns Chicken may offer pricing suggestions, they also retain the right to enforce specific pricing requirements if legally permissible. Prospective franchisees should be aware of these potential pricing controls and how they might affect their profitability and business decisions.