factual

Does the Bb.Q Chicken franchise agreement prevent franchisees from interfering with the business of other Bb.Q Chicken franchisees?

Bb_Q_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon the execution of this Agreement or the determination of an Accepted Location, whichever occurs later, you will be assigned a designated geographical area (the "Designated Territory") that will be described in Attachment 1 hereto. You understand and acknowledge that if your Accepted Location is a Non-Traditional Site (as described in Section 1.5 below), you will not receive a Designated Territory. You further understand and acknowledge that the Designated Territory is not exclusive to you, and we may choose to exercise the rights reserved to us in Section 1.5 below. Except as provided in this Agreement, and subject to your and the Principals' material compliance with this Agreement, any other agreement among you or any of your affiliates (defined for the purposes hereof as any entity that is controlled by,

controlling or under common control with such other entity) and us, we shall not establish or authorize any other person or entity, other than you, to establish a bb.q Chicken Franchised Business in the Designated Territory during the term of this Agreement and any extensions hereof, so long as you are not in default under this Agreement or this Agreement has not been terminated. You acknowledge and understand that the rights granted hereunder pertain only to the establishment of dedicated bb.q Chicken Franchised Business. You acknowledge and agree that our parents and/or affiliates may currently operate, or may in the future operate, food service businesses under different marks and with operating systems that are the same as or similar to the System, and that any such businesses might compete with your Franchised Business. You further agree and acknowledge that the license granted hereby is only of one (1) Restaurant, only at the Accepted Location, or one (1) Food Truck, and only from within the boundaries of the Designated Territory. Except as otherwise specified in this Agreement, we reserve the right to open, operate or franchise bb.q Chicken outlets around, bordering, and adjacent to the Designated Territory.

Source: Item 23 — RECEIPTS (FDD pages 62–283)

What This Means (2025 FDD)

Based on the 2025 Bb.Q Chicken Franchise Disclosure Document, the franchise agreement does address the relationship between franchisees and the franchisor regarding the establishment of other Bb.Q Chicken businesses. Specifically, franchisees are assigned a "Designated Territory," which is a geographical area described in Attachment 1 of the franchise agreement.

According to the FDD, if a Bb.Q Chicken franchisee's Accepted Location is not a Non-Traditional Site, they will receive a Designated Territory. However, this territory is not exclusive. Bb.Q Chicken retains the right to establish or authorize other franchisees within the Designated Territory, provided the existing franchisee is in compliance with the agreement. This means that while a franchisee is granted a specific area, Bb.Q Chicken can still allow other franchises to operate in the same territory.

Furthermore, the Bb.Q Chicken FDD states that the rights granted to the franchisee pertain only to the establishment of a dedicated Bb.Q Chicken Franchised Business at the Accepted Location or one Food Truck within the Designated Territory. Bb.Q Chicken also reserves the right to open, operate, or franchise Bb.Q Chicken outlets around, bordering, and adjacent to the Designated Territory, meaning that while franchisees have a designated area, Bb.Q Chicken retains considerable freedom to expand its franchise network nearby.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.