factual

What is the 'Accepted Location' in the context of a Bb.Q Chicken franchise?

Bb_Q_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

ATTACHMENT 1 TO THE FRANCHISE AGREEMENT

ACCEPTED LOCATION AND DESIGNATED TERRITORY

IN THE SITE SEARCH AREA OF [If there is no Accepted Location on the Effective Date, insert: **ACCEPTED LOCATION ADDRESS AND DESIGNATED TERRITORY TO BE DETERMINED AND INSERTED AFTER PREMISES IS IDENTIFIED BY YOU AND APPROVED BY US FOR THE bb.q CHICKEN FRANCHISED BUSINESS, IN ACCORDANCE WITH SECTIONS 1.2 AND 2.2 OF THE FRANCHISE AGREEMENT, .] 1. ACCEPTED LOCATION following Accepted Location: Pursuant to Section 1.2 of the Franchise Agreement, the Franchised Business shall be located at the 2. DESIGNATED TERRITORY: Pursuant to Section 1.4 of the Franchise Agreement, the Designated Territory shall be: FRANCHISEE (Entity): FRANCHISOR: BBDOTQ USA, INC. FRANCHISEE (Principal): FRANCHISEE (Principal): bb.q Chicken FA 2025 i

1.4 Designated Territory

Upon the execution of this Agreement or the determination of an Accepted Location, whichever occurs later, you will be assigned a designated geographical area (the "Designated Territory") that will be described in Attachment 1 hereto. You understand and acknowledge that if your Accepted Location is a Non-Traditional Site (as described in Section 1.5 below), you will not receive a Designated Territory. You further understand and acknowledge that the Designated Territory is not exclusive to you, and we may choose to exercise the rights reserved to us in Section 1.5 below. Except as provided in this Agreement, and subject to your and the Principals' material compliance with this Agreement, any other agreement among you or any of your affiliates (defined for the purposes hereof as any entity that is controlled by,

controlling or under common control with such other entity) and us, we shall not establish or authorize any other person or entity, other than you, to establish a bb.q Chicken Franchised Business in the Designated Territory during the term of this Agreement and any extensions hereof, so long as you are not in default under this Agreement or this Agreement has not been terminated. You acknowledge and understand that the rights granted hereunder pertain only to the establishment of dedicated bb.q Chicken Franchised Business. You acknowledge and agree that our parents and/or affiliates may currently operate, or may in the future operate, food service businesses under different marks and with operating systems that are the same as or similar to the System, and that any such businesses might compete with your Franchised Business. You further agree and acknowledge that the license granted hereby is only of one (1) Restaurant, only at the Accepted Location, or one (1) Food Truck, and only from within the boundaries of the Designated Territory. Except as otherwise specified in this Agreement, we reserve the right to open, operate or franchise bb.q Chicken outlets around, bordering, and adjacent to the Designated Territory.

1.2 Accepted Location

2.2.1 Prior to acquiring by lease or purchase a site for the Restaurant, but within sixty (60) days of the date this Agreement is executed, you shall locate a site for the Restaurant that satisfies the site evaluation guidelines provided to you by us pursuant to Section 5.1. You shall submit to us in the form specified by us, a description of the site, including evidence reasonably satisfactory to us demonstrating that the site satisfies our site evaluation guidelines, together with such other information and materials as we may reasonably require, including, but not limited to, a letter of intent or other evidence satisfactory to us which confirms your favorable prospects for obtaining the site. We shall have thirty (30) days after receipt of this information and materials to approve or disapprove, in our sole discretion, the proposed site as the location for the Restaurant. You acknowledge and agree that our acceptance of a location for the Restaurant is not a warranty or guaranty, express or implied, that you will achieve any particular level of success at the location or that your Restaurant will be profitable. Our acceptance of a location for the Restaurant only signifies that the location has met our then-current minimum criteria for a bb.q Chicken Restaurant. You must provide us with a copy of the signed lease for your Restaurant location within ninety (90) days after you have signed this Agreement, failure to do so may result in the termination of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 62–283)

What This Means (2025 FDD)

According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the 'Accepted Location' refers to the physical site where the franchised Bb.Q Chicken restaurant or food truck will operate. The franchisee is responsible for locating a site that meets Bb.Q Chicken's site evaluation guidelines, which must be done within 60 days of signing the Franchise Agreement. The franchisee must then submit a description of the site and evidence that it meets the brand's criteria. Bb.Q Chicken has 30 days to approve or disapprove the proposed site. The FDD states that the brand's acceptance of a location does not guarantee the franchisee's success or profitability. It only signifies that the location meets the minimum criteria for a Bb.Q Chicken Restaurant. The franchisee must provide a copy of the signed lease for the restaurant location within 90 days after signing the Franchise Agreement. Failure to do so may result in the termination of the agreement.

Attachment 1 to the Franchise Agreement further clarifies that if there is no 'Accepted Location' on the effective date of the agreement, the address and designated territory will be determined and inserted after the franchisee identifies the premises and Bb.Q Chicken approves it, in accordance with Sections 1.2 and 2.2 of the Franchise Agreement. Once an 'Accepted Location' is determined, it is documented in Attachment 1 to the Franchise Agreement. The franchisee will also be assigned a designated geographical area, or 'Designated Territory', which will also be described in Attachment 1. However, if the 'Accepted Location' is a Non-Traditional Site, the franchisee will not receive a Designated Territory.

Bb.Q Chicken retains the right to open, operate, or franchise Bb.Q Chicken outlets around, bordering, and adjacent to the Designated Territory, except as otherwise specified in the Franchise Agreement. The franchise license granted only applies to one Restaurant at the 'Accepted Location', or one Food Truck within the boundaries of the Designated Territory. This means the franchisee's rights are limited to the specific location approved by Bb.Q Chicken, and the brand can expand its presence in nearby areas. The franchisee must understand that Bb.Q Chicken's parents and/or affiliates may operate food service businesses under different marks and with operating systems that are the same as or similar to the System, and that any such businesses might compete with your Franchised Business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.