What is the franchisee's obligation if they breach the promises in the Bb.Q Chicken General Release?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisee or Franchisee's Principal(s) breaches any of the promises, covenants, or undertakings made herein by any act or omission, Franchisee and Franchisee's Principal(s) shall pay, by way of indemnification, all costs and expenses of any Released Franchisor Party caused by the act or omission, including reasonable attorneys' fees and costs.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, if a franchisee or their principal breaches any promise, covenant, or undertaking within the General Release through any action or failure to act, they are obligated to indemnify the Released Franchisor Party. This indemnification covers all costs and expenses incurred by the Released Franchisor Party as a result of the breach. These costs specifically include reasonable attorneys' fees and associated costs.
In practical terms, this means that if a Bb.Q Chicken franchisee violates the terms of the General Release, they will be financially responsible for any legal expenses Bb.Q Chicken incurs to defend itself. This could include a wide range of costs, such as lawyer fees, court filing fees, and other related expenses. The franchisee's financial responsibility is triggered by any act or omission that constitutes a breach of the General Release.
This clause is significant because it shifts the financial burden of defending against claims related to the General Release onto the franchisee. It also incentivizes the franchisee to fully comply with all terms and conditions outlined in the General Release to avoid potential legal and financial repercussions. Franchisees should carefully review the terms of the General Release and seek legal counsel to fully understand their obligations and potential liabilities.