Is the Development Fee for a Bb.Q Chicken multi-unit development agreement refundable?
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 ($40,00
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the development fee for a multi-unit development agreement is not refundable under any circumstances. The Development Fee is paid in consideration of the development rights granted to the developer.
The FDD specifies that the development fee is fully earned when the Multi-Unit Development Agreement is signed. The developer must pay the full amount of the Development Fee to Bb.Q Chicken upon execution of the agreement. This fee compensates Bb.Q Chicken for administrative expenses, lost development opportunities, and other costs incurred by granting the development rights.
The development fee is calculated as 100% of the initial franchise fee for each Bb.Q Chicken franchise the developer commits to develop under the agreement. The initial franchise fee for each franchise is $40,000. The franchisee will receive a credit of $40,000 from the development fee as payment in full of the initial franchise fee when executing the Franchise Agreement for the first Franchised Business concurrently with the execution of the Multi-Unit Operator Agreement. Upon execution of each additional Franchise Agreement for a Franchised Business to be developed, the franchisee will likewise receive a credit from the Development Fee to satisfy the initial franchise fees due.