Is the initial franchise fee for a Bb.Q Chicken franchise refundable?

INITIAL FEES

Franchise Agreement: You must pay us an initial franchise fee of $45,000 for the right to establish a single Franchised Business under a Franchise Agreement. You must pay the initial franchise fee in full when you sign the Franchise Agreement. This fee is used in part for working capital and in part for profit. The initial franchise fee is imposed uniformly on all franchisees and is not refundable under any circumstances.

In addition to the initial franchise fee, and development fee (if you sign a Multi-Unit Operator Agreement), the following initial fees will be paid to us or our affiliates before the opening of your Franchised Business. These initial fees are outlined in detail below the table.

| Franchise Opportunity | Range of Initial Fess | |---|---| | bb.q Chicken quick service restaurant | $112,000to $199,000 | | bb.q Chicken essential restaurant | $111,000to$148,000 | | bb.q Chicken food truck franchise | $111,000to$148,000 |

Grand Opening Marketing: You must conduct a grand opening marketing campaign that includes the elements we require. You must spend at least $10,000 on your grand opening marketing campaign. At our request, you must give the grand opening marketing money to us and we will conduct the grand opening marketing campaign on your behalf. If we collect this money from you, it is not refundable.

Equipment: You must pay us $50,000 to $130,000 if you will own a Restaurant, or $50,000 to $80,000 if you will own an essential Restaurant or Food Truck, for all equipment used in the operation of your Restaurant. We will purchase your equipment for you from the suppliers we designate. This fee is not refundable.

Point-of-Sale (POS) System: You must pay us $4,000 to $8,000 for the POS System we require you to use at your Franchised Business. We will purchase the hardware for the POS System for you from the approved supplier. This fee is not refundable.

Opening Materials: You must pay us $3,000 to $6,000 if you will own a Restaurant, or $2,000 to $5,000 if you will own an essential Restaurant or Food Truck, for various printed materials needed for interior, marketing, and operation of your Restaurant. This fee is not refundable.

During our fiscal year ended December 31, 2024, we waived 2 initial franchise fees. We discounted franchise fees for 32 franchisees, between 13% and 57%. No other franchise fees were discounted or waived in 2024.

From time to time we may offer special incentive programs as part of our franchise development activities. We currently offer an incentive program where we will discount the initial franchise fee by 30% for veterans and active-duty military personnel for the first Franchised Business purchased. We have the right to offer, modify or withdraw any incentive program without notice to you. The initial franchise fee is imposed uniformly on all franchisees and is not refundable under any circumstances.

Multi-Unit Operator Agreement: If you qualify to develop and operate multiple Restaurants or Food Trucks, then you will pay to us a development fee equal to 100% of the initial franchise fee for each Restaurant or Food Truck you commit to develop under the Multi-Unit Operator Agreement. The initial franchise fee for each Restaurant or Food Truck you commit to develop under the Multi-Unit Operator Agreement will be $50,000. If you commit to develop the minimum of three Restaurants and/or Food Trucks, the development fee is $150,000 ($50,000 x 3 = $150,000). We have the right to adjust this formula depending on the size of the area and the financial ability of the multi-unit operator.

Source: Item 5 — INITIAL FEES (FDD pages 13–15)