What is the Bb.Q Chicken franchisee's obligation regarding exercising Development Rights?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Recognizing that time is of the essence, you agree to exercise each of the Development Rights granted hereunder in the manner specified herein, and to satisfy the Minimum Performance Schedule in a timely manner. Your failure to adhere to the Minimum Performance Schedule shall constitute a default under this Agreement as provided in Section 9.1 hereof. Under no circumstances, however, may you open a Franchised Business unless and until there is a fully executed Franchise Agreement in place for such Franchised Business and the applicable initial franchise fee has been paid in full.
- 3.3 You shall exercise each Development Right granted herein only by executing a Franchise Agreement for each Franchised Business at a site approved by us in the Development Area as hereinafter provided within ten (10) days after receipt of said Franchise Agreement from us for the approved site and return same to us for our execution. The Franchise Agreement for the first Development Right exercised hereunder has been executed contemporaneously with this Agreement. The Franchise Agreement for each additional Development Right exercised hereunder shall be the then-current Franchise Agreement, except that the Royalty and Creative Marketing Fees shall not increase and shall be the same as stated in the first Franchise Agreement executed, subject to any non-material changes therein which are required to be made by changes in any applicable law, regulation or ordinance in effect from time to time. In the event we do not receive the properly executed Franchise Agreement with the appropriate number of copies within said ten (10) days from delivery thereof to you, our approval of the site shall be void and you shall have no rights with respect to said site.
- 3.4 You acknowledge that the approval of a particular site for a Franchised Business by us shall not be deemed to be an assurance or guaranty that the Franchised Business will operate successfully or at a profit from such site.
- 3.5 You may enter into the initial Franchise Agreement or any subsequent Franchise Agreement as required under this Agreement using a newly formed entity, such as a limited liability company, corporation or partnership, for the sole purpose of entering into a Franchise Agreement and operating the bb.q Chicken Franchised Business pursuant thereto, provided that you shall also personally sign such Franchise Agreement as a principal.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, a franchisee who obtains development rights must adhere to a specific schedule for exercising those rights. The franchisee must meet the Minimum Performance Schedule in a timely manner, as time is of the essence. Failure to meet this schedule constitutes a default under the agreement.
To exercise a development right, the franchisee must execute a Franchise Agreement for each Bb.Q Chicken location at a site approved by Bb.Q Chicken. This Franchise Agreement must be returned to Bb.Q Chicken for execution within ten days of receipt. The Franchise Agreement for the first development right is executed at the same time as the Development Agreement. For subsequent locations, the Franchise Agreement will be the current version, but the Royalty and Creative Marketing Fees will remain the same as in the first Franchise Agreement, except for non-material changes required by law.
If Bb.Q Chicken does not receive the properly executed Franchise Agreement with the required copies within the ten-day period, the site approval becomes void, and the franchisee loses rights to that site. Bb.Q Chicken clarifies that site approval does not guarantee the success or profitability of the Bb.Q Chicken franchise at that location. The franchisee may use a newly formed entity, such as an LLC, to enter into the Franchise Agreement, but the franchisee must also personally sign the agreement as a principal.