What criteria must a transferee meet to gain approval from Bb.Q Chicken for a franchise transfer?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) The transferee shall demonstrate to our reasonable satisfaction that transferee meets the criteria considered by us when reviewing a prospective franchisee's application for a franchise, including, but not limited to, our educational, managerial and business standards; transferee's good moral character, business reputation and credit rating; transferee's aptitude and ability to conduct the business franchised herein (as may be evidenced by prior related business experience or otherwise); transferee's financial resources and capital for operation of the business; and the geographic proximity and number of other Franchised Businesses owned or operated by transferee;
(e) The transferee shall enter into a written agreement, in a form reasonably satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all obligations, covenants and agreements contained in this Agreement; and, if transferee is a corporation or a partnership, transferee's shareholders, partners or other investors, as applicable, shall execute such agreement as transferee's principal(s) and guarantee the performance of all such obligations, covenants and agreements;
(f) The transferee shall execute, for a term ending on the expiration date of this Agreement and with such successor terms as may be provided by this Agreement, the standard form franchise agreement then being offered to new System franchisees and other ancillary agreements as we may require for the Franchised Business, which agreements shall supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including, without limitation, the then-current System-wide Royalty Fee, Brand Development Fee or marketing expenditure requirement; provided, however, that the transferee shall not be required to pay any initial franchise fee;
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, a transferee must meet several criteria to be approved for a franchise transfer. The transferee must satisfy Bb.Q Chicken's standards for prospective franchisees, including educational, managerial, and business standards. Bb.Q Chicken will also assess the transferee's moral character, business reputation, and credit rating.
Bb.Q Chicken will evaluate the transferee's aptitude and ability to manage the franchised business, potentially considering prior related business experience. The company will also review the transferee's financial resources and capital available for operating the business. Additionally, Bb.Q Chicken will consider the geographic proximity and number of other Bb.Q Chicken franchised businesses owned or operated by the transferee.
The transferee is required to enter into a written agreement that is satisfactory to Bb.Q Chicken. This agreement includes assuming full, unconditional, joint, and several liability for all obligations outlined in the original franchise agreement from the date of transfer. If the transferee is a corporation or partnership, its shareholders, partners, or investors must also guarantee the performance of these obligations. The transferee must also execute the standard franchise agreement then offered to new franchisees, which will supersede the original agreement and may include different terms, such as royalty fees or marketing expenditure requirements. However, the transferee will not be required to pay an initial franchise fee.