What agreement-related defaults would prevent a transfer approval from Bb.Q Chicken?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our sole discretion, require any or all of the following as conditions of our approval:
(a) All of the accrued monetary obligations of you or any of your affiliates and all other outstanding obligations to us arising under this Agreement or any other agreement shall have been satisfied in a timely manner and you shall have satisfied all trade accounts and other debts, of whatever nature or kind, in a timely manner;
(b) You and your affiliates shall not be in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you or any of your affiliates and us or any of our affiliates at the time of transaction:
(c) The transferor and its Principal(s) shall have executed a general release, in a form reasonably satisfactory to us, of any and all claims against us, our officers, directors, shareholders, partners, agents, representatives, independent contractors, servants and employees of each of them, in their corporate and individual capacities, including, without limitation, claims arising under this Agreement and federal, state and local laws, rules and regulations;
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, several defaults related to the franchise agreement can prevent a transfer approval. Bb.Q Chicken may require that all accrued monetary obligations of you or any of your affiliates and all other outstanding obligations to us arising under this Agreement or any other agreement shall have been satisfied in a timely manner and you shall have satisfied all trade accounts and other debts, of whatever nature or kind, in a timely manner.
Additionally, Bb.Q Chicken may deny a transfer if you or your affiliates are in default of any provision of the Franchise Agreement, any amendment, or any other agreement between you or your affiliates and Bb.Q Chicken or its affiliates at the time of the transaction. The transferor and its Principal(s) must execute a general release, in a form reasonably satisfactory to Bb.Q Chicken, of any and all claims against Bb.Q Chicken, its officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees, in their corporate and individual capacities, including claims arising under the Franchise Agreement and federal, state, and local laws, rules, and regulations.
These conditions are typical in franchising, as franchisors want to ensure that any new franchisee meets their financial and legal standards and that all existing obligations are resolved before a transfer is approved. Prospective Bb.Q Chicken franchisees should carefully review the transfer provisions in the Franchise Agreement and ensure they maintain compliance to avoid any issues when seeking to transfer their franchise.