What is the condition for Bb.Q Chicken to retain all rights with respect to Restaurants and Food Trucks?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as expressly limited by the Franchise Agreement, we retain all rights with respect to Restaurants and Food Trucks, the Marks, and any products and services related to the System anywhere in the world including the right: (a) to produce, offer and sell and to grant others the right to produce, offer and sell the products offered at Restaurants or Food Trucks and any other goods displaying the Marks or other trade and service marks through alternative distribution channels, as described below, both within and outside your Designated Territory, and under any terms and conditions we deem appropriate; (b) to operate and to grant others the right to operate Restaurants or Food Trucks located outside the Designated Territory under any terms and conditions we deem appropriate and regardless of proximity to your Franchised Business; (c) to operate and to grant others the right to operate Restaurants at Non-Traditional Sites within and outside the Designated Territory under any terms and conditions we deem appropriate; and (d) the right to acquire and operate a business operating one or more restaurants or food service businesses located or operating in your Designated Territory.
Source: Item 12 — TERRITORY (FDD pages 41–45)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Bb.Q Chicken retains all rights regarding Restaurants and Food Trucks, the Marks, and any products and services related to the System anywhere in the world, except as expressly limited by the Franchise Agreement. This includes the right to produce, offer, and sell products, as well as grant others the right to do the same, through alternative distribution channels both within and outside a franchisee's Designated Territory. These activities can occur under any terms and conditions Bb.Q Chicken deems appropriate. Bb.Q Chicken also retains the right to operate or grant others the right to operate Restaurants or Food Trucks outside the Designated Territory, regardless of their proximity to a franchisee's business, and to operate Restaurants at Non-Traditional Sites within and outside the Designated Territory under any terms they deem appropriate. Finally, Bb.Q Chicken has the right to acquire and operate businesses that operate one or more restaurants or food service businesses located or operating in a franchisee's Designated Territory.
For a prospective franchisee, this means that while you will have a Designated Territory, Bb.Q Chicken maintains significant control over the brand's expansion and distribution. They can sell products through various channels like the internet, grocery stores, or direct marketing, without compensating you for those sales, even if they occur within your territory. They also have the right to establish other franchises or company-owned outlets that sell similar products or services under a different trademark without your consent.
This lack of exclusivity and the broad rights retained by Bb.Q Chicken could lead to increased competition within or near your Designated Territory. The FDD indicates that you may face competition from other franchisees, outlets that Bb.Q Chicken owns, or other channels of distribution and competitive brands that Bb.Q Chicken controls. This could impact your potential revenue and profitability, as Bb.Q Chicken has the freedom to explore alternative distribution methods and non-traditional sites, potentially saturating the market.
It is important for a prospective Bb.Q Chicken franchisee to carefully consider these factors and discuss them with the franchisor. Understanding the potential for competition and the limitations on your territorial rights is crucial for making an informed decision about investing in a Bb.Q Chicken franchise.