What happens if a Bb.Q Chicken franchisee loses the right to possession of the premises?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We can refuse to grant you a successor term for your franchise if your lease, sublease or other document by which you have the right to occupy the Restaurant Premises is not extended to cover the period of the successor term before your successor term is to take effect or if you do not have a written commitment from your landlord to renew the lease or sublease for a period at least equal to the successor term. We may also refuse to grant you a successor term for your franchise under other circumstances, including, but not limited to, your failure to substantially comply with the terms of this Agreement, your failure to pay amounts owed to us when due, or your failure to cure of any defaults incurred during the Initial Term, if applicable.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
Based on the 2025 Bb.Q Chicken Franchise Disclosure Document, if a franchisee's lease, sublease, or right to occupy the restaurant premises isn't extended to cover a potential successor term, Bb.Q Chicken can refuse to grant a successor term for the franchise. This means that if the franchisee cannot secure an extension or renewal of their lease with the landlord, Bb.Q Chicken is not obligated to allow them to continue operating the franchise beyond the current term. This clause protects Bb.Q Chicken from having a franchise operate in a location that may be unstable or unsuitable for the long term.
Bb.Q Chicken may also refuse to grant a successor term if the franchisee fails to substantially comply with the terms of the Franchise Agreement, fails to pay amounts owed to Bb.Q Chicken when due, or fails to cure any defaults incurred during the initial term. These stipulations ensure that franchisees remain in good standing with the company to be considered for a renewal. The requirement for lease extension or renewal demonstrates the importance of maintaining a stable business location and fulfilling all obligations to both the franchisor and the landlord.
For a prospective Bb.Q Chicken franchisee, this highlights the critical importance of negotiating favorable lease terms with the landlord, including options for renewal or extension that align with the potential successor terms offered by Bb.Q Chicken. Additionally, it underscores the need to adhere strictly to the Franchise Agreement's terms and maintain timely payments to Bb.Q Chicken to remain eligible for a successor term. This policy is fairly standard in the franchise industry, as franchisors typically want to ensure that franchisees maintain stable locations and uphold their contractual obligations to protect the brand and system standards.