Does Bb.Q Chicken require franchisee approval for transferring any interest in the Franchise Agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
the agreements attached to this disclosure document.
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| k. “Transfer” by franchisee – defined | Section 14.2.1 | Includes sale, assignment, conveyance, pledge, mortgage or other encumbrance of any interest in the Franchise Agreement, the Restaurant or Food Truck or you (if you are not a natural person) | |
| l. Franchisor approval of transfer by franchisee | Section 14.2.2 | You must obtain our consent before transferring any interest. We will not unreasonably withhold our consent | |
| m. Conditions for franchisor approval of transfer | Section 14.2.2 | Conditions include: You must pay all amounts due us, not otherwise be in default, sign a general release, and pay a transfer fee. Transferee must meet our criteria, complete training to our satisfaction and sign current Franchise Agreement | |
| n. Franchisor’s right of | Section 14.4 | Within 30 days after notice, we have the | |
| first refusal to acquire | option to purchase the transferred interest on | ||
| franchisee’s business | the same terms and conditions | ||
| o. Franchisor’s option to purchase franchisee’s business | Section 18.11 | Upon termination or expiration of the Franchise Agreement, we have the right to purchase certain assets of the Franchised Business | |
| p. Death or disability of franchisee | Section 14.5 | The Franchise Agreement will terminate upon your death or permanent disability, and the Franchised Business must be transferred within six months to a replacement franchisee that we approve. | |
| q. Non-competition | Section 10.3.1 | You are prohibited from operating or having | |
| covenants during the | an interest in a similar business without our | ||
| term of the franchise | prior written consent, subject to state law. | ||
| r. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–55)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, a franchisee must obtain approval from Bb.Q Chicken before transferring any interest in the Franchise Agreement. Bb.Q Chicken states that it will not unreasonably withhold consent.
For a standard franchise agreement, the conditions for Bb.Q Chicken's approval include the franchisee paying all amounts due to Bb.Q Chicken, not being in default, signing a general release, and paying a transfer fee. The person or entity to whom the franchise is being transferred (the transferee) must meet Bb.Q Chicken's criteria, complete training to Bb.Q Chicken's satisfaction, and sign the current Franchise Agreement.
For a multi-unit operator agreement, Bb.Q Chicken has the right to approve all transfers, and its consent will not be unreasonably withheld. Conditions for transfer include not being in default, having at least 25% of all outlets required to be developed open or under construction, having all debts paid, the buyer meeting Bb.Q Chicken's current criteria for new multi-unit operators, execution of a general release (where legal), payment of a transfer fee, and the buyer personally guaranteeing all obligations.
Bb.Q Chicken also retains the right of first refusal to acquire the franchisee's business. This means that Bb.Q Chicken has the option to purchase the transferred interest on the same terms and conditions as any proposed buyer, within 30 days after notice.