What is a Bb.Q Chicken franchisee prohibited from doing regarding Alternate Distribution Channels?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
4.4.1 Solicitation and Sales Restrictions. You must target the advertising within the Designated Territory and may only solicit sales from customers located within the Designated Territory. Notwithstanding, you may engage in sales by delivery outside of the Designated Territory, with our prior consent. You are prohibited from selling and soliciting customers through Alternate Distribution Channels, as defined below, provided that you may fulfill at the Franchised Business premises orders received through our approved online ordering platform or approved third-party delivery applications.
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 generally prohibited from selling to and soliciting customers through Alternate Distribution Channels. However, there is an exception: Bb.Q Chicken franchisees can fulfill orders received through the franchisor's approved online ordering platform or approved third-party delivery applications at the franchised business premises.
Alternate Distribution Channels are defined broadly and include methods such as internet sales, catalog sales, sales via grocery stores or club stores, telemarketing, and other forms of direct marketing. This restriction ensures that Bb.Q Chicken maintains control over these channels and can manage brand consistency and customer experience across various platforms.
This policy allows Bb.Q Chicken to explore diverse sales avenues without franchisees independently engaging in those channels. Bb.Q Chicken retains the right to produce, offer, and sell products through alternative distribution channels both within and outside a franchisee's designated territory. This includes the right to allow others to do the same, under terms and conditions Bb.Q Chicken deems appropriate. This enables Bb.Q Chicken to adapt to changing market conditions and consumer preferences while maintaining a unified brand presence.
For a prospective franchisee, this means they must focus their sales and marketing efforts within their designated territory, primarily through the physical restaurant location, unless explicitly permitted otherwise. They should rely on the approved online ordering platform and third-party delivery apps for any online sales. Understanding these restrictions is crucial for planning their business strategy and avoiding potential conflicts with the franchisor's broader distribution plans.