Can the non-compete restrictions for a Bb.Q Chicken franchisee be waived or altered?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17 of the Disclosure Document is amended to reflect the requirement under Indiana Code 23-2-2.7-1 (9), which states that any post term non-compete covenant must not extend beyond the franchisee's designated territory.
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- Item 17 is amended to state that this is subject to Indiana Code 23-2-2.7-1 (10).
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- Under Indiana Code 23-2-2.7-1 (10), jurisdiction and venue must be in Indiana if the franchisee so requests. The Franchise Agreement and Multi-Unit Operator Agreement are hereby amended.
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- Under Indiana Code 23-2-2.7-1 (10), franchisee may not agree to waive any claims or rights.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the ability to waive or alter non-compete restrictions depends on the specific state. For instance, the FDD includes an addendum required by the state of Indiana which states that any post-term non-compete covenant must not extend beyond the franchisee's designated territory.
However, the Franchisee Acknowledgement Statement included as Exhibit J in the Bb.Q Chicken FDD states that it is not for use in California, Maryland, and Washington. This acknowledgement confirms that no statement signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on franchisor statements. This suggests that in these states, certain waivers might not be enforceable.
Prospective Bb.Q Chicken franchisees should carefully review their state's franchise laws and consult with an attorney to understand the enforceability and potential for alteration or waiver of any non-compete restrictions. The specific terms and conditions outlined in the franchise agreement and any state-specific addenda will govern the franchisee's obligations.