What agreements must the transferee execute when taking over a Bb.Q Chicken franchise?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
d such other then-current ancillary agreements being required by us of new multi-unit operators on the date of transfer.
- 11.6.6 You execute a general release, in a form satisfactory to us, of any and all claims against us, our officers, directors, employees and principal stockholders of any and all claims and causes of action that you may have against us or any subsidiary or affiliated corporations in any way relating to this Agreement or the performance or non-performance thereof by us. You also agree to subordinate any claims you may have against the transferee to us and indemnify us against any claims by the transferee relating to misrepresentations in the transfer process, specifically excluding those representations made by us in the Franchise Disclosure Document given to the transferee.
- 11.6.7 You or transferee pay to us a transfer fee in the amount of fifty percent 50% of the then current initial franchise fee to transferees outside of the System, or twenty percent (20%) of the then current initial franchise fee to existing franchisees.
- 11.7 Death or Permanent Disability.
- 11.7.1 The grant of rights under this Agreement is personal to you, and on your death or permanent disability, the executor, administrator, conservator, or other personal representative of yours shall be required to transfer your interest in this Agreement within six (6) months from the date of death or permanent disability to a third party approved by us. Failure to transfer in accordance with the forgoing will constitute a material default and all that is granted by this Agreement will terminate. For purposes of this Agreement, the term "permanent disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent such person from providing continuous and material supervision of the operation of your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule during the six (6)-month period from its onset.
- 11.7.2 Upon your death or your claim of permanent disability, you or a representative of yours must notify us of such death or claim of permanent disability within ten (10) days of its occurrence. Any transfer upon death or permanent disability shall be subject to the same terms and conditions as described in this Section for any inter vivos transfer.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
Based on the 2025 Bb.Q Chicken Franchise Disclosure Document, a transferee taking over a franchise must pay a transfer fee. If the transferee is outside of the Bb.Q Chicken system, the transfer fee is 50% of the then-current initial franchise fee. For existing franchisees, the transfer fee is 20% of the then-current initial franchise fee.
In the event of the franchisee's death or permanent disability, their interest in the Franchise Agreement must be transferred within six months to a franchisor-approved third party. Failure to do so constitutes a material default, leading to the termination of the agreement. Any transfer due to death or permanent disability is subject to the same terms and conditions as a regular transfer.
Furthermore, upon exercising a successor option, the franchisee must execute a general release in favor of Bb.Q Chicken, its affiliates, officers, directors, and shareholders, thereby releasing all claims against them. The successor must also pay a successor agreement fee equal to 100% of the then-current initial franchise fee for a single unit franchise. However, Bb.Q Chicken retains the right to refuse a successor franchise agreement if they decide to withdraw from the marketing area or the Designated Territory where the franchise is located.