What does Bb.Q Chicken consider as 'Collateral' in the security agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| BBDOTQ USA, INC., a New Jersey Corporation ("Assignee"), all of Assignor's right and title to and interest in that certain "Lease" a copy of which is attached as Exhibit A respecting premises commonly known as This assignment is for collateral purposes only and except as specified in this document Assignee will have no liability or obligation of any kind whatsoever arising from or in connection with this assignment or the Lease unless and until Assignee takes possession of the premises the Lease demises according to the terms of this document and assumes Assignor's obligations under the Lease. | FOR VALUE RECEIVED, the undersigned ("Assignor") assigns, transfers and sets over to |
|---|---|
| and that Assignor has not previously assigned or transferred and is not otherwise obligated to assign or | Assignor represents and warrants to Assignee that it has full power and authority to assign the Lease |
| transfer any of its interest in the Lease or the premises it demises. | |
| Restaurant or Food Truck between Assignee and Assignor or in the event Assignor defaults under any | Upon Assignor's default under the Lease or under the "Franchise Agreement" for a bb.q Chicken |
| document or instrument securing the Franchise Agreement Assignee has the right to take possession of the | |
| premises the Lease demises and expel Assignor from the premises. In that event Assignor will have no | |
| further right and title to or interest in the Lease but will remain liable to Assignee for any past due rental | |
| payments or other charges Assignee is required to pay Lessor to effectuate the assignment this document | |
| contemplates. | |
| modification of the Lease without Assignee's prior written consent. Throughout the term of the Franchise | Assignor agrees that it will not suffer or permit any surrender, termination, amendment or |
| Agreement Assignor agrees that it will elect and exercise all options to extend the term of or renew the | |
| Lease not less than thirty (30) days before the last day upon which the option must be exercised unless | |
| Assignee agrees otherwise in writing. Upon Assignee's failure to agree otherwise in writing and upon | |
| Assignor's failure to elect to extend or renew the Lease as required Assignor appoints Assignee as its true | |
| and lawful attorney-in-fact with the authority to exercise the extension or renewal options in the name, | |
| place and stead of Assignor for the sole purpose of effecting the extension or renewal. | |
| ASSIGNEE: | ASSIGNOR: |
| BBDOTQ USA, INC. | |
| By: | By: |
| Name: | Name: |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, Attachment 2 to the Franchise Agreement refers to a 'Collateral Assignment of Lease.' This indicates that the franchisee's lease agreement for the premises where the Bb.Q Chicken restaurant will operate is considered collateral.
The document outlines that the franchisee ('Assignor') assigns their rights and title to the lease to BBDOTQ USA, INC. ('Assignee') as collateral. However, this assignment is specifically for collateral purposes, meaning Bb.Q Chicken, as the Assignee, generally has no liability or obligation related to the lease unless they take possession of the premises due to certain circumstances.
The circumstances that would trigger Bb.Q Chicken to take possession include the franchisee defaulting on the lease or under the Franchise Agreement. If such a default occurs, Bb.Q Chicken has the right to take possession of the premises and expel the franchisee, terminating the franchisee's rights to the lease. The franchisee would still be liable for any past due rental payments or other charges that Bb.Q Chicken has to pay to the Lessor to make the assignment happen.
The franchisee also agrees not to modify the lease without Bb.Q Chicken's written consent and must elect to extend or renew the lease at least 30 days before the option expires, unless Bb.Q Chicken agrees otherwise. If the franchisee fails to do so, Bb.Q Chicken is appointed as the attorney-in-fact to exercise the extension or renewal options on behalf of the franchisee.