What is the geographic scope of the license granted to a Bb.Q Chicken franchisee?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ated outside the Designated Territory, then you agree to pay us a relocation fee equal to one hundred percent (100%) of the then-current initial franchise fee. We shall issue a revised Attachment 1, in accordance with Section 1.2, to reflect the new address of the Accepted Location.
1.4 Designated Territory
Upon the execution of this Agreement or the determination of an Accepted Location, whichever occurs later, you will be assigned a designated geographical area (the "Designated Territory") that will be described in Attachment 1 hereto. You understand and acknowledge that if your Accepted Location is a Non-Traditional Site (as described in Section 1.5 below), you will not receive a Designated Territory. You further understand and acknowledge that the Designated Territory is not exclusive to you, and we may choose to exercise the rights reserved to us in Section 1.5 below. Except as provided in this Agreement, and subject to your and the Principals' material compliance with this Agreement, any other agreement among you or any of your affiliates (defined for the purposes hereof as any entity that is controlled by,
controlling or under common control with such other entity) and us, we shall not establish or authorize any other person or entity, other than you, to establish a bb.q Chicken Franchised Business in the Designated Territory during the term of this Agreement and any extensions hereof, so long as you are not in default under this Agreement or this Agreement has not been terminated. You acknowledge and understand that the rights granted hereunder pertain only to the establishment of dedicated bb.q Chicken Franchised Business. You acknowledge and agree that our parents and/or affiliates may currently operate, or may in the future operate, food service businesses under different marks and with operating systems that are the same as or similar to the System, and that any such businesses might compete with your Franchised Business. You further agree and acknowledge that the license granted hereby is only of one (1) Restaurant, only at the Accepted Location, or one (1) Food Truck, and only from within the boundaries of the Designated Territory.
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 is assigned a "Designated Territory," which is a specific geographical area detailed in Attachment 1 of the Franchise Agreement. However, if the Accepted Location is a Non-Traditional Site, the franchisee will not receive a Designated Territory. The FDD specifies that the Designated Territory is not exclusive, and Bb.Q Chicken reserves certain rights within it. Bb.Q Chicken will not establish or authorize another franchisee within the Designated Territory as long as the franchisee is compliant with the agreement. The rights granted pertain only to the establishment of a dedicated Bb.Q Chicken Franchised Business.
The license granted to a Bb.Q Chicken franchisee is for one Restaurant or one Food Truck, and only at the Accepted Location, or one (1) Food Truck, and only from within the boundaries of the Designated Territory. Bb.Q Chicken retains the right to open, operate, or franchise Bb.Q Chicken outlets around, bordering, and adjacent to the Designated Territory. This means that while a franchisee has a defined area, Bb.Q Chicken can still expand its presence in nearby locations, potentially impacting the franchisee's business.
Prospective franchisees should carefully review Attachment 1 to fully understand the boundaries and characteristics of their Designated Territory. They should also consider the implications of Bb.Q Chicken's right to establish other outlets in the surrounding areas. Understanding these conditions is crucial for assessing the potential market and competition a franchisee might face. Additionally, franchisees should inquire about the criteria used to define a "Non-Traditional Site" and the implications of operating without a Designated Territory.