What is the 'Franchised Business' referring to in the Bb.Q Chicken agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In reliance on your representations and warranties hereunder, we hereby grant to you, upon the terms and conditions in this Agreement, the right and license, and you hereby accept the right and obligation, to operate a bb.q Chicken restaurant or an essential version or food truck under the Marks and the System in accordance with this Agreement ("Restaurant", "Essential", "Food Truck", or "Franchised Business"). You have represented to us that you have entered into this Agreement with the intention to comply fully with the obligations to construct a Franchised Business hereunder and not for the purpose of reselling the rights to develop the Franchised Business hereunder. You understand and acknowledge that we have granted such rights in reliance on the business skill, financial capacity, personal character of, and expectations of performance hereunder by, you and the Principal(s) and that this Agreement and the rights and obligations hereunder may not be transferred until after the Franchised Business is open to the public in accordance with Section 2.6, and then only in accordance with Article 16 hereof. You will offer and sell alcoholic beverages from your Restaurant, and you will comply with all applicable laws and licensing requirements related thereto, and, further, you will obtain any insurance coverages required relating to the offer and sale of alcoholic beverages.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the 'Franchised Business' refers to the Bb.Q Chicken restaurant, essential version, or food truck that the franchisee is granted the right and license to operate. This right is granted under the terms and conditions outlined in the franchise agreement. Bb.Q Chicken emphasizes that it grants these rights based on the franchisee's business skills, financial capacity, personal character, and expected performance.
The agreement specifies that the franchisee intends to fully comply with the obligations to construct the Franchised Business and is not entering the agreement to resell the development rights. The rights and obligations within the agreement cannot be transferred until the Franchised Business is open to the public and even then, only under specific conditions detailed in the agreement.
Furthermore, the franchisee is expected to offer and sell alcoholic beverages from their Restaurant, adhering to all relevant laws and licensing requirements, including obtaining the necessary insurance coverage. The Franchised Business must operate at a location accepted by Bb.Q Chicken, indicating the importance of site approval in the franchising process.