When are liquidated damages due to Bb.Q Chicken for violation of confidentiality or non-competition covenants?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Liquidated Damages – Violation of Confidentiality or Non-Competition Covenants | $100,000, plus our attorneys' fees | Per Occurrence | Payable to us if you violate the confidentiality and/or non-competition covenants in the Franc |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, if a franchisee violates the confidentiality or non-competition covenants in the Franchise Agreement, liquidated damages of $100,000 plus attorney's fees are payable to Bb.Q Chicken per occurrence. The payment is due per occurrence of the violation.
This means that if a franchisee breaches the terms of either the confidentiality or non-competition agreements, they will be required to pay Bb.Q Chicken $100,000 for each instance, in addition to covering Bb.Q Chicken's legal costs. These covenants are designed to protect Bb.Q Chicken's proprietary information and market position.
For a prospective Bb.Q Chicken franchisee, it's crucial to fully understand the scope and limitations of the confidentiality and non-competition clauses outlined in the Franchise Agreement. Breaching these covenants can result in significant financial penalties, so franchisees must ensure they operate within the defined boundaries. Franchisees should seek legal counsel to fully understand their obligations and the potential consequences of non-compliance.