What is the condition for Bb.Q Chicken to assign the Multi-Unit Operator Agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi-Unit | Summary | |
|---|---|---|---|
| Operator Agreement | |||
| h. “Cause” defined – non-curable defaults | 9 | Failure to meet your minimum performance schedule; failure to comply with applicable laws; if all of your outlets stop operating; unauthorized transfer; you make a material misrepresentation to us; conviction by you or your owners of an indictable offense; bankruptcy or insolvency; if a Franchise Agreement with us is terminated according to its terms (this is a cross-default provision) | |
| i. Multi-unit operator’s obligations on termination/ non- renewal | 10 | You must stop selecting sites for Restaurants or Food Trucks, and you may not open any more Restaurants or Food Trucks. | |
| j. Assignment of contract by franchisor | 11 | No restriction on our right to assign. However, no assignment will be made except to an assignee who, in our good faith judgment, is willing and able to assume our obligations under the |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–55)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Bb.Q Chicken has the right to assign the Multi-Unit Operator Agreement. However, Bb.Q Chicken can only assign the agreement to an assignee who, in Bb.Q Chicken's good faith judgment, is willing and able to assume Bb.Q Chicken's obligations under the Multi-Unit Operator Agreement.
This means that if Bb.Q Chicken decides to transfer its rights and responsibilities under the Multi-Unit Operator Agreement to another party, that party must be deemed capable of fulfilling those obligations. This protects the multi-unit operator, as the new franchisor must be able to support the franchise system.
For a prospective franchisee, this clause offers some security. It ensures that Bb.Q Chicken cannot simply assign the agreement to any entity; the assignee must demonstrate the willingness and ability to perform the franchisor's duties. This condition aims to maintain the standards and support expected within the Bb.Q Chicken franchise system, even if the original franchisor changes.