If a Bb.Q Chicken franchisee is granted a Designated Territory, where will it be specified?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement: Your Franchise Agreement will specify the site or address that will be the accepted location for your Restaurant (the "Accepted Location"). Your Franchise Agreement may also specify your territory (the "Designated Territory"). The size and scope of the Designated Territory will be contained in the Franchise Agreement and will be determined based on two criteria: (1) whether the location is in an urban or suburban setting, and (2) how close in proximity it is to an existing bb.q Chicken Franchised Business. An urban area generally consists of contiguous territory having a density of at least 1,000 persons per square mile. A suburban area typically surrounds a major city and is typically made up of single-family detached residences with more green space and a lower population density than an urban area. The sources we use to obtain
population data include the U.S. Census Bureau. If your Franchised Business will be located in a suburban area, your Designated Territory will include a minimum of 10,000 people. If your Franchised Business will be located in an urban area, your Designated Territory will include a minimum of 5,000 people. No new franchised outlets may be established within a half-mile radius of an established bb.q Chicken Franchised Business. If you do not yet have a location at the signing of the Franchise Agreement, you will receive a non-exclusive site search area listed in Attachment 1 of the Franchise Agreement.
If any non-traditional site (such as grocery stores, supermarkets, mall food courts, airports, hospitals, cafeterias, commissaries, schools, hotels, office buildings and stadiums, arenas, ballparks, festivals, fairs, military bases and other mass gathering locations or events) is located within the physical boundaries of your Designated Territory, then the premises of this non-traditional site will not be included in your Designated Territory and you will have no rights to this non-traditional site. If your Restaurant is located at a non-traditional site, you will not receive a Designated Territory.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 41–45)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the specifics of a franchisee's Designated Territory, if granted, will be outlined in the Franchise Agreement. The Franchise Agreement will specify the Accepted Location for the Restaurant and may also specify the Designated Territory. The size and scope of the Designated Territory will be detailed within the Franchise Agreement, determined by whether the location is in an urban or suburban setting and its proximity to existing Bb.Q Chicken Franchised Businesses.
For locations in suburban areas, the Designated Territory will include a minimum of 10,000 people, while urban areas will have a minimum of 5,000 people. It's important to note that Bb.Q Chicken does not grant exclusive territories, meaning franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels. Additionally, non-traditional sites within a Designated Territory, such as those in grocery stores or airports, are not included in the territory, and a Restaurant at a non-traditional site will not receive a Designated Territory.
If a franchisee does not have a location at the time of signing the Franchise Agreement, they will receive a non-exclusive site search area listed in Attachment 1 of the Franchise Agreement. During the term of the Franchise Agreement, Bb.Q Chicken will not establish or operate, nor license any other person to establish or operate, a Franchised Business in the Designated Territory, with some exceptions as permitted under the Franchise Agreement. The master Franchisees of Franchisor's parent Genesis BBQ Global Co., Ltd will not be permitted to establish units within the Franchisee's designated territory. The Designated Territory cannot be altered before the Franchise Agreement expires or is terminated, but Bb.Q Chicken has the right to modify the boundaries for a successor Franchise Agreement.
Bb.Q Chicken may sell products under the Marks within and outside a franchisee's Designated Territory through any method of distribution other than a Bb.Q Chicken Restaurant or Food Truck, including sales through channels of distribution such as the internet, catalog sales, grocery stores, club stores, telemarketing or other direct marketing sales. Franchisees may sell menu items to customers who live anywhere but who choose to dine at or from their Franchised Business. However, franchisees may not engage in any promotional activities or sell products through the internet, catalogs, or other means directed to customers outside their Designated Territory. If approved to provide catering/delivery services, franchisees may do so only within the area designated by Bb.Q Chicken.