factual

Does the Bb.Q Chicken agreement survive the termination of the Franchise Agreement?

Bb_Q_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 22.1.6 All of your representations and warranties contained in this Agreement are complete, correct and accurate as of the date of execution of this Agreement and will survive any termination or expiration 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, certain representations and warranties made by the franchisee survive the termination or expiration of the Franchise Agreement. Specifically, the franchisee's representations and warranties must be complete, correct, and accurate as of the date of execution of the agreement, and these assurances remain in effect even after the agreement ends. This means that Bb.Q Chicken can hold the franchisee accountable for the accuracy of their initial statements and commitments, even after the franchise relationship has concluded.

Additionally, the franchisee is bound by certain obligations upon termination, such as ceasing operation of the Franchised Business, stopping the use of the Bb.Q Chicken system, and canceling any assumed names containing the Bb.Q Chicken mark. The franchisee must also refrain from using similar marks that could cause confusion or dilute Bb.Q Chicken's rights. These post-termination obligations are designed to protect Bb.Q Chicken's brand and system, ensuring that former franchisees do not unfairly compete or misrepresent their affiliation with the brand.

Furthermore, for a period of two years after the termination, expiration, or transfer of the franchise, the franchisee and its principals are restricted from engaging in any Competitive Business within a 0.5-mile radius of any Bb.Q Chicken Franchised Business in the system. This non-compete clause prevents former franchisees from directly competing with Bb.Q Chicken and potentially diverting customers or harming the brand's goodwill. These measures collectively ensure that certain aspects of the agreement, particularly those related to brand protection and non-competition, extend beyond the formal termination of the Franchise Agreement.

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.