What is the liquidated damages fee for Bb.Q Chicken franchisees who violate 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, a franchisee who violates the confidentiality or non-competition covenants within the Franchise Agreement will be required to pay liquidated damages. This fee is set at $100,000, in addition to Bb.Q Chicken's attorneys' fees. This amount is due per occurrence of a violation.
This means that if a Bb.Q Chicken franchisee breaches the terms of either the confidentiality or non-competition agreements, they will be liable for a significant financial penalty. The $100,000 fee is intended to cover the damages incurred by Bb.Q Chicken as a result of the franchisee's violation. The franchisee is also responsible for covering Bb.Q Chicken's legal costs associated with pursuing the matter.
It is important for prospective Bb.Q Chicken franchisees to fully understand the terms and conditions of the Franchise Agreement, particularly those related to confidentiality and non-competition. Franchisees should ensure they have the resources to comply with these covenants to avoid incurring substantial liquidated damages and legal expenses.