What happens if a Bb.Q Chicken franchisee or its principals are convicted of a felony?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is to be added at the end of Item 3:
Except as provided above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal, or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions other than routine litigation incidental to the business that is significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten years immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Item 3 outlines certain conditions regarding the background of the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under the Bb.Q Chicken trademark. Specifically, it addresses pending or past legal issues.
Bb.Q Chicken states that no such party can have a pending administrative, criminal, or civil action alleging a felony, or violations of franchise, antitrust, or securities laws, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable allegations. Furthermore, no party can have been convicted of a felony or pleaded nolo contendere to a felony charge. This restriction applies to actions within the ten years immediately preceding the application for registration, including misdemeanor charges related to franchise, antifraud, or securities law violations, fraud, embezzlement, fraudulent conversion, misappropriation of property, or unfair or deceptive practices.
Additionally, Bb.Q Chicken states that no party should be subject to a currently effective injunctive or restrictive order or decree relating to the franchise under Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law resulting from a concluded or pending action brought by a public agency. This also extends to orders from national securities associations or exchanges suspending or expelling a person from membership, or injunctive or restrictive orders relating to other business activities resulting from actions by a public agency, such as those affecting a real estate license.