Does the Bb.Q Chicken franchise agreement prevent franchisees from interfering with the business of Franchisor-affiliated outlets?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration for such specialized training, trade secrets and confidential information (including, without limitation, information regarding the operational, sales, promotional and marketing methods and techniques of us and the System which are beyond the present skills and experience of you and the Principal(s) and your managers and employees), you and the Principal(s) covenant that with respect to you, during the term of this Agreement, except as otherwise approved in writing by us, which approval may be withheld or denied in our sole and absolute discretion, neither you nor any of the Principal(s) shall, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person(s), partnership or corporation:
(a) Divert, or attempt to divert, any business or customer of the Franchised Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any bb.q Chicken franchisees or Franchisor-affiliated outlets.
(b) Own, maintain, operate, engage in, or have any financial or beneficial interest in (including any interest in corporations, partnerships, trusts, unincorporated associations or joint ventures), advise, assist or make loans to, any business located within the United States, its territories, states or commonwealths, or any other country, province, state or geographic area in which we have used, sought registration of or registered the same or similar Marks or operates or licenses others to operate a business under the same or similar Marks, which business is of a character and concept similar to the Franchised Business, including a food service business which offers and sells the same or similar food products (a "Competitive Business").
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, franchisees are prohibited from interfering with the business of the Franchisor or any Bb.Q Chicken franchisees or Franchisor-affiliated outlets. During the term of the agreement, franchisees cannot divert or attempt to divert business or customers to any competitor. They also cannot perform any act that is injurious or prejudicial to the goodwill associated with the Bb.Q Chicken brand and system.
This restriction extends to actions that could disrupt, decrease, or otherwise jeopardize the business of the Franchisor or its affiliated outlets. This is a standard clause in franchise agreements to protect the brand and the network of franchisees.
After the agreement expires, this restriction continues for two years. During this time, franchisees are not allowed to interfere with the business of the Franchisor or any Bb.Q Chicken franchisees or Franchisor-affiliated outlets. They also cannot own, maintain, operate, or have any financial interest in a competitive business within a 0.5-mile radius of any Franchised Business in the System. These covenants are considered reasonable limitations to protect the goodwill and business interests of Bb.Q Chicken.
These restrictions are in place to protect Bb.Q Chicken's market position and prevent franchisees from using the knowledge and resources gained during their franchise term to unfairly compete with the brand or other franchisees. Prospective franchisees should carefully consider these limitations and how they might impact their future business endeavors after leaving the Bb.Q Chicken system.