What are the conditions under which Bb.Q Chicken can assign the franchise agreement to another entity?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 11.7.3 Immediately after your death or permanent disability, or while the rights granted under this Agreement are owned by your executor, administrator, guardian, personal representative or trustee, your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule shall be supervised by an interim successor manager satisfactory to us, or we, in our sole discretion, may provide interim management at a fee equal to ten percent (10%) of the gross sales generated by your bb.q Chicken outlet(s) during our operation thereof, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by us, pending transfer of your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule to your lawful heirs or successors.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
I am unable to provide the conditions under which Bb.Q Chicken can assign the franchise agreement to another entity, based on the excerpts from the 2025 Franchise Disclosure Document. The provided excerpts do discuss transfer conditions related to death or permanent disability of the franchisee, as well as transfer fees, but do not fully address the conditions for assignment of the franchise agreement to another entity in general.
Specifically, the excerpts mention that the franchise agreement is personal to the franchisee and outlines procedures in the event of death or permanent disability, requiring the transfer of the franchise within six months to a franchisor-approved third party. Additionally, there is mention of transfer fees, which are 50% of the current initial franchise fee for transferees outside the Bb.Q Chicken system and 20% for existing franchisees.
To fully understand the conditions for assignment, a prospective franchisee should ask Bb.Q Chicken's franchisor for the specific section of the Franchise Agreement that details the conditions and procedures for assigning the agreement to another entity. This would include understanding any restrictions, required approvals, and associated costs.