If Bb.Q Chicken assigns its rights, what financial responsibility must the assignee have?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.9 We shall have the right to assign this Agreement and all of our attendant rights and privileges to any person, firm, corporation or other entity provided that, with respect to any assignment resulting in the subsequent performance by the assignee of our functions: (i) the assignee shall, at the time of such assignment, be financially responsible and economically capable of performing our obligations; and (ii) the assignee shall expressly assume and agree to perform such obligations.
You expressly affirm and agree that we may sell our assets, our rights to the Marks or to the System outright to a third party; may go public; may engage in a private placement of some or all of our securities; may merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and, with regard to any or all of the above sales, assignments and dispositions, you expressly and specifically waive any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "BBDOTQ USA, Inc." as Franchisor. Nothing contained in this Agreement shall require us to remain in the food service business or to offer the same products and services, whether or not bearing the Marks, in the event that we exercise our right to assign our rights in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, if Bb.Q Chicken assigns its rights and privileges to another entity, that entity must meet specific financial criteria. The assignee must be financially responsible and economically capable of performing Bb.Q Chicken's obligations under the franchise agreement at the time of the assignment.
Furthermore, the assignee is required to expressly assume and agree to perform all of Bb.Q Chicken's obligations. This means the new entity takes on the full responsibility for fulfilling the duties and commitments outlined in the original franchise agreement.
This provision protects franchisees by ensuring that any new franchisor has the financial stability and willingness to uphold the promises made in the franchise agreement. It also allows Bb.Q Chicken to sell its assets, rights to the Marks, or the System outright to a third party; go public; engage in a private placement of some or all of our securities; merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and, with regard to any or all of the above sales, assignments and dispositions, you expressly and specifically waive any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "BBDOTQ USA, Inc." as Franchisor.