If Bb.Q Chicken provides interim management, does the franchisee have any obligation to indemnify Bb.Q Chicken?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.7.3 Immediately after your death or permanent disability, or while the rights granted under this Agreement are owned by your executor, administrator, guardian, personal representative or trustee, your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule shall be supervised by an interim successor manager satisfactory to us, or we, in our sole discretion, may provide interim management at a fee equal to ten percent (10%) of the gross sales generated by your bb.q Chicken outlet(s) during our operation thereof, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by us, pending transfer of your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule to your lawful heirs or successors.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, in the event of the franchisee's death or permanent disability, Bb.Q Chicken may provide interim management for the Bb.Q Chicken outlet. If Bb.Q Chicken provides interim management, the franchisee is responsible for covering the costs.
Specifically, Bb.Q Chicken will charge a fee equal to 10% of the gross sales generated by the Bb.Q Chicken outlet during their operation. In addition to this percentage, the franchisee must also pay for any and all costs of travel, lodging, meals, and other expenses reasonably incurred by Bb.Q Chicken during the period of interim management. These fees and expense reimbursements are required while Bb.Q Chicken manages the outlet, pending its transfer to the franchisee's lawful heirs or successors.
This arrangement ensures that the Bb.Q Chicken outlet continues to operate and generate revenue during the transition period following the franchisee's death or disability. However, it also places a financial burden on the franchisee's estate or representatives, who must cover the costs associated with Bb.Q Chicken's interim management services. Franchisees should consider this potential expense when making their estate planning.