How does Bb.Q Chicken determine if an arrangement qualifies as a lease?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
2.2 Site Selection
2.2.1 Prior to acquiring by lease or purchase a site for the Restaurant, but within sixty (60) days of the date this Agreement is executed, you shall locate a site for the Restaurant that satisfies the site evaluation guidelines provided to you by us pursuant to Section 5.1. You shall submit to us in the form specified by us, a description of the site, including evidence reasonably satisfactory to us demonstrating that the site satisfies our site evaluation guidelines, together with such other information and materials as we may reasonably require, including, but not limited to, a letter of intent or other evidence satisfactory to us which confirms your favorable prospects for obtaining the site. We shall have thirty (30) days after receipt of this information and materials to approve or disapprove, in our sole discretion, the proposed site as the location for the Restaurant. You acknowledge and agree that our acceptance of a location for the Restaurant is not a warranty or guaranty, express or implied, that you will achieve any particular level of success at the location or that your Restaurant will be profitable. Our acceptance of a location for the Restaurant only signifies that the location has met our then-current minimum criteria for a bb.q Chicken Restaurant. You must provide us with a copy of the signed lease for your Restaurant location within ninety (90) days after you have signed this Agreement, failure to do so may result in the termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, prior to securing a site for the Restaurant, either through lease or purchase, the franchisee must locate a site that meets Bb.Q Chicken's site evaluation guidelines, within 60 days of signing the Franchise Agreement. The franchisee needs to submit a description of the site, along with evidence that demonstrates the site meets Bb.Q Chicken's guidelines. This submission should also include any other information Bb.Q Chicken requires, such as a letter of intent or other evidence confirming the franchisee's prospects for obtaining the site. Bb.Q Chicken then has 30 days to approve or disapprove the proposed site.
Bb.Q Chicken's acceptance of a location does not provide any guarantee of success or profitability. It only signifies that the location meets the minimum criteria for a Bb.Q Chicken Restaurant at that time. The franchisee must provide Bb.Q Chicken with a copy of the signed lease for their Restaurant location within 90 days after signing the Franchise Agreement. Failure to provide the signed lease within this timeframe may result in the termination of the Franchise Agreement.
Attachment 2 to the Franchise Agreement is a Collateral Assignment of Lease, and Attachment 1 deals with the specifics of the Accepted Location and Designated Territory. Additionally, the Consent to Collateral Assignment and Agreement of Lessor indicates that the lessor agrees to notify the Assignee (Bb.Q Chicken) of any default by the Assignor (franchisee) under the lease and that the Assignee has the right to cure any default by the Assignor under the lease within 30 days after the Lessor's delivery of notice of the default. The lessor also consents to the Collateral Assignment and agrees to recognize the Assignee as the tenant under the lease if the Assignee takes possession of the premises, provided the Assignee cures any default within the 30-day period.