From whom must a Bb.Q Chicken franchisee purchase proprietary items?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ill be a default under the Franchise Agreement.
We may develop for use in the System certain products which are prepared from confidential proprietary recipes and other proprietary products which bear the Marks. Because of the importance of quality and uniformity of production and the significance of those products in the System, it is to your and our benefit that we closely control the production and distribution of those products. Therefore, you will use only our proprietary recipes and other proprietary products and will purchase those items solely from us or from a source designated by us for all of your inventory of those products. Currently we are not an approved supplier of any products or services to our franchisees.
We may, when appropriate, negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of the System. As of the date of this Disclosure Document, there are no
purchasing or distribution cooperatives in which you must participate. When determining whether to grant new, additional or successor franchises, we consider many factors, including your compliance with the requirements described in this Item 8, but your compliance with these requirements does not automatically give you the right to an additional or successor franchise.
We may establish strategic alliances or preferred vendor programs with suppliers that are willing to supply some products, equipment, or services to some or all of the Franchised Businesses in our System. We may negotiate supply contracts with our suppliers under which we are able to purchase products, equipment, supplies, services and other items at a price that will benefit us and our franchisees. If we do establish those types of alliances or programs, we may limit the number of approved suppliers with whom you may deal, we may designate sources that you must use for some or all products, equipment and services, and we may refuse to approve proposals from franchisees to add new suppliers if we believe that approval would not be in the best interests of the System or the franchised network.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–31)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, franchisees must purchase proprietary recipes and other proprietary products solely from Bb.Q Chicken or from a source designated by them for all inventory of those products. Currently, Bb.Q Chicken is not an approved supplier of any products or services to its franchisees. However, Bb.Q Chicken retains the right to designate themselves as approved suppliers in the future, and if they do so, they have the right to earn a profit on the sale of items to their franchisees.
Bb.Q Chicken also requires franchisees to purchase a required beverage machine from a designated supplier. Additionally, franchisees must purchase equipment from Bb.Q Chicken, who in turn purchases it on the franchisee's behalf from designated suppliers such as Map Restaurant Supply and Action Sales. For the fiscal year ended December 31, 2024, Bb.Q Chicken earned $2,872,548.72, or 5.4% of its total revenue, through equipment purchases with designated suppliers made on behalf of its franchisees.
Bb.Q Chicken estimates that purchases from them or approved suppliers, or that must conform to their specifications, will represent approximately 80% to 90% of a franchisee's total purchases in establishing the Franchised Business, and approximately 80% to 90% of their total purchases in the continuing operation of the Franchised Business. If a franchisee wishes to purchase or lease any products from a supplier that Bb.Q Chicken has not previously approved, they must submit a written request for approval and may need to reimburse Bb.Q Chicken for travel charges and costs related to testing and inspection, up to $1,500.