What document must be attached to the lease for the Bb.Q Chicken Restaurant premises to be accepted?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
2.2.2 If you elect to purchase the premises for the Restaurant, you shall sign and submit our Site Evaluation Agreement, pay our Site Evaluation Fee, and deliver to us a copy of the proposed contract of sale to us for our written acceptance of the location prior to its execution and shall furnish to us a copy of the executed contract of sale within ten (10) days after execution. If you will occupy the premises of the Restaurant under a lease or sublease, you shall sign and submit to us our Site Evaluation Agreement, pay our Site Evaluation Fee and submit a copy of the lease or sublease to us for written approval of location prior to its execution and shall furnish to us a copy of the executed lease or sublease within ten (10) days after execution. No lease or sublease for the Restaurant premises shall be accepted by us unless a Collateral Assignment of Lease, prepared by us and executed by us, you and the lessor or sublessor, in substantially the form attached as Attachment 2, is attached to the lease and incorporated therein. We shall have ten (10)
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, if a franchisee chooses to lease or sublease their restaurant premises, the lease or sublease must have a Collateral Assignment of Lease attached to it. This document must be prepared and executed by Bb.Q Chicken, the franchisee, and the lessor or sublessor, and it must be in a form that is substantially similar to Attachment 2 of the Franchise Agreement. Bb.Q Chicken must provide written approval of the location before the lease is executed.
This requirement ensures that Bb.Q Chicken has certain rights and control over the lease, which is a common practice in franchising. The Collateral Assignment of Lease protects Bb.Q Chicken's interests in the event that the franchisee defaults on the franchise agreement. It allows Bb.Q Chicken to potentially take over the lease and continue operating the restaurant at that location, or assign the lease to another franchisee.
A prospective Bb.Q Chicken franchisee should carefully review Attachment 2 of the Franchise Agreement to understand the terms and conditions of the Collateral Assignment of Lease. They should also discuss this requirement with their legal counsel and the lessor or sublessor to ensure that all parties are in agreement before signing the lease. Franchisees must also provide Bb.Q Chicken with a copy of the executed lease or sublease within ten days after execution.