How is the Designated Territory for a Bb.Q Chicken franchise defined, and where is it described?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the execution of this Agreement or the determination of an Accepted Location, whichever occurs later, you will be assigned a designated geographical area (the "Designated Territory") that will be described in Attachment 1 hereto. You understand and acknowledge that if your Accepted Location is a Non-Traditional Site (as described in Section 1.5 below), you will not receive a Designated Territory. You further understand and acknowledge that the Designated Territory is not exclusive to you, and we may choose to exercise the rights reserved to us in Section 1.5 below. Except as provided in this Agreement, and subject to your and the Principals' material compliance with this Agreement, any other agreement among you or any of your affiliates (defined for the purposes hereof as any entity that is controlled by,
controlling or under common control with such other entity) and us, we shall not establish or authorize any other person or entity, other than you, to establish a bb.q Chicken Franchised Business in the Designated Territory during the term of this Agreement and any extensions hereof, so long as you are not in default under this Agreement or this Agreement has not been terminated. You acknowledge and understand that the rights granted hereunder pertain only to the establishment of dedicated bb.q Chicken Franchised Business. You acknowledge and agree that our parents and/or affiliates may currently operate, or may in the future operate, food service businesses under different marks and with operating systems that are the same as or similar to the System, and that any such businesses might compete with your Franchised Business. You further agree and acknowledge that the license granted hereby is only of one (1) Restaurant, only at the Accepted Location, or one (1) Food Truck, and only from within the boundaries of the Designated Territory. Except as otherwise specified in this Agreement, we reserve the right to open, operate or franchise bb.q Chicken outlets around, bordering, and adjacent to the Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, a franchisee will be assigned a Designated Territory, which is a specific geographical area, upon the execution of the Franchise Agreement or the determination of an Accepted Location, whichever occurs later. The specifics of this territory will be detailed in Attachment 1 of the Franchise Agreement. However, if the Accepted Location is a Non-Traditional Site, the franchisee will not receive a Designated Territory.
It's important to note that the Designated Territory granted to a Bb.Q Chicken franchisee is not exclusive. Bb.Q Chicken reserves certain rights, including the right to operate or franchise other Bb.Q Chicken outlets around, bordering, and adjacent to the Designated Territory. Furthermore, Bb.Q Chicken's parents and/or affiliates may operate food service businesses under different marks, potentially competing with the franchisee's business. The rights granted to the franchisee pertain only to the establishment of a dedicated Bb.Q Chicken Franchised Business at the Accepted Location.
Attachment 1 to the Franchise Agreement provides further details regarding the Accepted Location and Designated Territory. If an Accepted Location is not determined by the Effective Date of the agreement, the address and Designated Territory will be determined and inserted after the premises is identified by the franchisee and approved by Bb.Q Chicken. The franchisee's rights are limited to one restaurant or one food truck within the boundaries of the Designated Territory.
This arrangement has significant implications for prospective Bb.Q Chicken franchisees. The lack of exclusivity and the potential for competition from both Bb.Q Chicken itself and its affiliates means that franchisees need to carefully evaluate the market and potential customer base within their Designated Territory. The limited rights to a single location also restrict expansion opportunities within the territory without further agreements. Franchisees should seek clarification from Bb.Q Chicken regarding the criteria used to define Designated Territories and the potential for future encroachment.