When is the Development Fee for a Bb.Q Chicken multi-unit development agreement due?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ated in the area described in Attachment 2 of this Agreement (hereinafter "Development Area").
- 1.2 Each Franchised Business for which a Development Right is granted hereunder shall be established and operated pursuant to a Franchise Agreement to be entered into between you and us in accordance with Section 3.1 hereof.
- 1.3 Except as otherwise provided in this Agreement, we shall not establish, nor franchise anyone other than you to establish, a Franchised Business in the Development Area during the term of this Agreement, provided you are not in default hereunder.
- 1.4 This Agreement is not a Franchise Agreement and does not grant to you any right to use the Marks or System.
- 1.5 You shall have no right under this Agreement to franchise others under the Marks or System.
SECTION 2 DEVELOPMENT FEE
- 2.1 In consideration of the development rights granted herein, you shall pay to us a development fee as outlined in Attachment 1 hereto (the "Development Fee"). The Development Fee is fully earned at the time this Multi-Unit Development Agreement is signed and is not refundable under any circumstances. Developer shall pay the full amount of the Development Fee to Franchisor upon Developer's execution of this Agreement. The Development Fee is calculated as one hundred percent (100%) of the initial franchise fee for each Franchised Business you commit to develop hereunder.
- 2.2 The initial franchise fee for each Franchised Business to be developed hereunder is Forty Thousand Dollars ($40,000). You will execute the Franchise Agreement for the first Franchised Business concurrently with your execution of this Agreement, and you will receive a credit of Forty Thousand Dollars ($40,000) from the Development Fee as payment in full of the initial franchise fee. Upon execution of each additional Franchise Agreement for a Franchised Business to be developed hereunder, you will likewise receive a credit from the Development Fee to satisfy the initial franchise fees due.
- 2.3 The Development Fee shall be fully earned by us upon execution of this Agreement and is non-refundable.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the Development Fee is due upon the execution of the Multi-Unit Development Agreement. Specifically, the FDD states that the developer must pay the full Development Fee to Bb.Q Chicken when the developer signs the agreement. This fee is considered fully earned by Bb.Q Chicken at the time of signing and is non-refundable under any circumstances.
The Development Fee is calculated as 100% of the initial franchise fee for each Bb.Q Chicken restaurant the developer commits to open under the agreement. The initial franchise fee for each restaurant is $40,000. Upon signing the Multi-Unit Development Agreement, the developer also executes the Franchise Agreement for the first Bb.Q Chicken location and receives a credit of $40,000 from the Development Fee to cover this initial franchise fee. Subsequent franchise agreements also receive a credit from the development fee to satisfy initial franchise fees due.
However, there is an addendum required by the state of Maryland that affects the payment of the development fee. According to this addendum, all development fees and initial payments by multi-unit operators are deferred until the first franchise under the multi-unit operator agreement opens. Therefore, if the multi-unit operator's franchise is in Maryland, the development fee is not due upon signing the agreement, but rather when the first franchise location opens.