Does Bb.Q Chicken require Franchisee's Principals to sign additional confidentiality and non-competition agreements, and if so, under what conditions?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, certain parties are characterized as Franchisee's Principals (referred to in this Disclosure Document as "your Principals"). The Franchise Agreement is signed by us, by you, and by your Principals. By signing the Franchise Agreement, your Principals agree to be individually bound by certain obligations in the Franchise Agreement, including covenants concerning confidentiality and non-competition, and to personally guarantee your performance under the Franchise Agreement. Depending on the type of business activities in which you or your Principals may be involved, we may require your Principals to sign additional confidentiality and non-competition agreements.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 10–13)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the Franchise Agreement is signed by Bb.Q Chicken, the franchisee, and the franchisee's Principals. By signing the Franchise Agreement, the Principals agree to be individually bound by certain obligations, including those concerning confidentiality and non-competition, and to personally guarantee the franchisee's performance under the Franchise Agreement.
Bb.Q Chicken may require the franchisee's Principals to sign additional confidentiality and non-competition agreements depending on the type of business activities in which the franchisee or their Principals may be involved. This implies that if the Principals have outside business interests that could potentially conflict with or impact the Bb.Q Chicken franchise, additional agreements might be necessary to protect Bb.Q Chicken's interests.
This requirement is fairly common in franchising, as franchisors seek to protect their trade secrets, operational methods, and competitive advantage. Prospective Bb.Q Chicken franchisees should carefully review the Franchise Agreement and any additional agreements to understand the full scope of these obligations and how they might affect their Principals' other business activities. It is advisable to seek legal counsel to fully understand the implications of these agreements.