What fee must be paid to Bb.Q Chicken to obtain a successor franchise agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2.8 you pay to us a successor agreement fee equal to one hundred percent (100%) of our then-current initial franchise fee for a single unit franchise; and
- 3.2.9 Notwithstanding anything herein to the contrary, we reserve the right not to enter into a successor franchise agreement for your franchise as a result of a decision to withdraw from a marketing area or the Designated Territory in which your Franchised Business is located.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, a franchisee must pay a successor agreement fee to renew their franchise agreement for a subsequent term. This fee is equal to 100% of the then-current initial franchise fee for a single unit franchise.
As of the FDD date, the initial franchise fee for a single restaurant or food truck is $45,000. Therefore, under the current terms, a franchisee would need to pay $45,000 to renew their agreement, assuming the initial franchise fee remains the same at the time of renewal. However, the successor agreement fee is based on the then-current initial franchise fee, so this amount could change.
Bb.Q Chicken also reserves the right to deny a successor franchise agreement if they decide to withdraw from the marketing area or designated territory where the franchised business is located. Additionally, franchisees must meet certain conditions to be eligible for a successor agreement, including keeping all monetary obligations current, executing a general release of claims, and upgrading the franchised business to meet current standards. Prospective franchisees should consider these factors and the potential cost of the successor agreement fee when evaluating the long-term investment in a Bb.Q Chicken franchise.