Within what timeframe must a Browns Chicken Prospective Franchisee locate a suitable site?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ELIMINARY AGREEMENT**
| CURRENT ASSETS: | | | |---|---|---| | Cash and Cash Equivalents | $ 37,437 | $ 78,676 | | Cash - VIE | 20,532 | 65,330 | | Accounts Receivable (Net of Allowance for Doubtful | | | | Accounts of $0 in 2024 and $7,999 in 2023) | 21,293 | 43,420 | | Accounts Receivable - VIE (Net of Allowance for | | | | Doubtful Accounts of $0 in 2024 and $0 in 2023) | 14,423 | 24,810 | | Uniform & Equipment Inventory | 4,625 | 4,968 | | Prepaid Expenses | 4,350 | 6,750 | | Total Current Assets | 102,660 | 223,954 | after execution of this Preliminary Agreement, a site suitable for the operation of a Store acceptable to
BROWN within the following area: _______________________________ (the "Area").
- It shall be the obligation of PROSPECTIVE FRANCHISEE to locate, within sixty (60) days
- a. The Area is not exclusive or protected either during the term of this Agreement or in the event a franchise is granted. BROWN has the right to offer and grant a franchise to any other party within the Area. In the event BROWN grants a franchise to another party within the Area during the term of this Agreement, PROSPECTIVE FRANCHISEE may terminate this Agreement and obtain a refund of the Deposit as provided in Paragraph 6 below.
- b. BROWN shall not unreasonably withhold approval of sites that meet its standards for general location, physical and demographic characteristics of the neighborhood, traffic pattern, parking, competition, proximity to other businesses (including other Stores), the nature of other businesses in proximity to the site, layout and other physical characteristics, rental, lease duration and other lease terms and conditions for the Store.
- c. Upon execution of this Agreement, BROWN will furnish PROSPECTIVE FRANCHISEE in writing criteria for site selection, which materials must be returned to BROWN upon termination of this Agreement.
- d. If PROSPECTIVE FRANCHISEE shall be unable to locate an acceptable site within the time above specified, BROWN may, at any time thereafter, terminate this Preliminary Agreement provided it shall refund a portion of the Deposit as provided in Paragraph 6 below.
- e.
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, a prospective franchisee has 60 days after the execution of the Preliminary Agreement to locate a site suitable for a Browns Chicken store. This site must also be acceptable to Browns Chicken. The area in which the site is to be located is to be specified in the Preliminary Agreement.
It is important to note that this designated area is not exclusive or protected during the term of the agreement, meaning Browns Chicken retains the right to offer and grant franchises to other parties within the same area. If Browns Chicken grants a franchise to another party in the area during the term of the Preliminary Agreement, the prospective franchisee has the right to terminate the agreement and receive a refund of their deposit.
If the prospective franchisee fails to locate an acceptable site within the 60-day timeframe, Browns Chicken has the option to terminate the Preliminary Agreement and refund a portion of the deposit, as detailed in the agreement. Upon execution of the Preliminary Agreement, Browns Chicken will provide the prospective franchisee with written criteria for site selection. Browns Chicken also states that its approval of a premises does not constitute a warranty of any kind as to the suitability of the premises for a Browns Chicken store.