When does Bb.Q Chicken determine the Development Area for a Multi-Unit Operator Agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
eement**
In certain circumstances, we will offer the right to enter into a multi-unit operator agreement in the form attached as Exhibit C to this Disclosure Document (the "Multi-Unit Operator Agreement") to develop multiple franchised Restaurants and/or Food Trucks to be located within a specifically described geographic area (the "Development Area"). We will determine the Development Area before you sign the Multi-Unit Operator Agreement and it will be included in the Multi-Unit Operator Agreement. You must establish a minimum of three Restaurants and/or Food Trucks within the Development Area according to a minimum performance schedule, and you must sign a separate Franchise Agreement for each Restaurant or Food Truck established under the Multi-Unit Operator Agreement.
The Franchise Agreement for the first Restaurant or Food Truck developed under the Multi-Unit Operator Agreement will be in the form attached as Exhibit B to this Disclosure Document, and we expect that you will sign the first Franchise Agreement at the same time you sign the Multi-Unit Operator Agreement. For each additional Restaurant or Food Truck developed under the Multi-Unit Operator Agreement, you must sign the form of Franchise Agreement that we are then offering to new franchisees, which may differ from the current form of Franchise Agreement included with this Disclosure Document. The size of the Development Area will vary depending upon local market conditions and the number of Restaurants and/or Food Trucks to be developed.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 10–13)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the Development Area for a Multi-Unit Operator Agreement is determined before the agreement is signed. Specifically, Bb.Q Chicken determines the Development Area before you sign the Multi-Unit Operator Agreement, and it will be included in the Multi-Unit Operator Agreement. This area is a specifically described geographic area where multiple franchised Restaurants and/or Food Trucks will be located.
This means that prospective multi-unit operators will know the exact geographic area they are responsible for developing before committing to the agreement. This provides clarity and allows the franchisee to assess the market potential and feasibility of developing multiple units within that specific area. The size of the Development Area will vary depending upon local market conditions and the number of Restaurants and/or Food Trucks to be developed.
The franchisee is required to establish a minimum of three Restaurants and/or Food Trucks within the Development Area according to a minimum performance schedule. Additionally, a separate Franchise Agreement must be signed for each Restaurant or Food Truck established under the Multi-Unit Operator Agreement. The Franchise Agreement for the first Restaurant or Food Truck is expected to be signed at the same time as the Multi-Unit Operator Agreement, while subsequent locations will use the then-current form of the Franchise Agreement.