What monetary obligations must be satisfied before Bb.Q Chicken will approve a transfer?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2.2 If you wish to transfer all or part of your interest in the Franchised Business, any of the Franchised Business's material assets (except as provided in Section 14.2.1 above) or this Agreement, or if you or a Principal wishes to transfer or permit a transfer of any ownership interest in you, then in each such case (any or all of which are referred to in this Article 14 as a "Restricted Transfer"), transferor and the proposed transferee shall apply to us for our consent.
We shall not unreasonably withhold our consent to a Restricted Transfer.
We may, in our sole discretion, require any or all of the following as conditions of our approval:
(a) All of the accrued monetary obligations of you or any of your affiliates and all other outstanding obligations to us arising under this Agreement or any other agreement shall have been satisfied in a timely manner and you shall have satisfied all trade accounts and other debts, of whatever nature or kind, in a timely manner;
(b) You and your affiliates shall not be in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you or any of your affiliates and us or any of our affiliates at the time of transaction:
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, before a transfer of a franchise can be approved, all accrued monetary obligations of the franchisee or their affiliates to Bb.Q Chicken must be satisfied in a timely manner. This includes any outstanding debts arising from the Franchise Agreement or any other agreement.
In addition to settling accounts with Bb.Q Chicken, the franchisee must also ensure that all trade accounts and other debts, regardless of their nature, are paid in a timely manner. This indicates that Bb.Q Chicken wants to ensure the franchise is in good financial standing with all creditors before a transfer is approved.
Furthermore, the franchisee and their affiliates must not be in default of any provision of the Franchise Agreement, any amendments to it, or any other agreements with Bb.Q Chicken or its affiliates at the time of the proposed transfer. This condition ensures that the franchisee has been compliant with all contractual obligations before a transfer can proceed. These stipulations protect Bb.Q Chicken's interests by ensuring that the franchise is transferred in good financial and legal standing.