What is the dependency for territorial protection for a Bb.Q Chicken franchisee?

According to Bb.Q Chicken's 2025 Franchise Disclosure Document, a franchisee's territorial protection depends on compliance with the Franchise Agreement. The FDD states that during the term of the Franchise Agreement, Bb.Q Chicken will not establish or operate, nor license any other person to establish or operate, a Franchised Business in the Designated Territory, with some exceptions. The master Franchisees of Franchisor's parent Genesis BBQ Global Co., Ltd will not be permitted to establish units within the Franchisee's designated territory.

This means that as long as the franchisee adheres to the terms outlined in the Franchise Agreement, Bb.Q Chicken will not open or allow another franchisee to open a location within the franchisee's designated territory. This provides a level of territorial security, but it's crucial to understand what constitutes compliance with the Franchise Agreement. A franchisee must carefully review the Franchise Agreement to understand their obligations and ensure they are meeting them to maintain their territorial protection.

It is important to note that the territorial protection is not exclusive and the franchisee may face competition from other franchisees, from outlets that Bb.Q Chicken owns, or from other channels of distribution or competitive brands that Bb.Q Chicken controls. The FDD also states that the territorial protection does not depend on achieving a certain sales volume, market penetration, or other factor, other than compliance with the Franchise Agreement. This means that even if a franchisee is not performing well, they will still maintain their territorial protection as long as they are in compliance with the Franchise Agreement.