What geographic limitations apply to the non-competition covenants after the Bb.Q Chicken franchise is terminated or expires?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 10.3.2 | You and your Principals are prohibited for two years from expiration or termination of the franchise from operating or having an interest in a similar business within 20 miles of any Franchised Business in the System, subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–55)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, both the Franchise Agreement and the Multi-Unit Operator Agreement contain post-term non-compete clauses. After the franchise is terminated or expires, the franchisee (or multi-unit operator) and their principals are prohibited from operating or having an interest in a similar business. This restriction lasts for two years.
The geographic scope of this restriction extends to within 20 miles of any Bb.Q Chicken Franchised Business in the System. This means that after leaving the Bb.Q Chicken system, a former franchisee cannot open a competing restaurant within a 20-mile radius of any existing Bb.Q Chicken location, regardless of whether that location was one they previously operated.
It is important to note that these non-competition covenants are subject to state law, which may impact their enforceability. Prospective franchisees should consult with legal counsel to understand the specific implications of these restrictions in their state. This is a fairly standard non-compete clause in franchising, intended to protect the brand and other franchisees from unfair competition from former operators who have learned Bb.Q Chicken's business model and methods.