For a Bb.Q Chicken franchise in Minnesota, what must happen before the initial franchise fee is paid?

According to Bb.Q Chicken's 2025 Franchise Disclosure Document, a specific addendum applies to franchisees in Minnesota regarding the initial franchise fee. Bb.Q Chicken will defer the payment of the initial franchise fee and any other initial payment until all of their material pre-opening obligations have been satisfied, and the franchisee's business is open and operating. However, the franchisee must execute the Franchise Agreement before looking for a site or beginning training.

This deferred payment structure is mandated by Minnesota law, offering a degree of financial protection to the franchisee. It ensures that Bb.Q Chicken fulfills its pre-opening responsibilities, such as site selection assistance, providing prototype design plans, and offering the Confidential Operations Manual, before the franchisee is required to pay the initial franchise fee. This arrangement reduces the franchisee's risk, as they are not paying the fee until the franchise is nearly ready to commence operations.

It's important to note that while the initial franchise fee is deferred, the franchisee must still sign the Franchise Agreement before Bb.Q Chicken provides assistance with site selection or allows the franchisee to begin training. This commitment ensures that both parties are aligned and legally bound to the franchise agreement before significant resources are invested. This deferred payment plan is specific to Minnesota, as indicated by the addendum, and may not apply in other states where Bb.Q Chicken franchises are offered.