Can Bb.Q Chicken require the transferee to meet the then-current Brand Development Fee?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.6.7 You or transferee pay to us a transfer fee in the amount of fifty percent 50% of the then current initial franchise fee to transferees outside of the System, or twenty percent (20%) of the then current initial franchise fee to existing franchisees.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
Based on the 2025 Bb.Q Chicken Franchise Disclosure Document, the document does not specify whether a transferee is required to meet the then-current Brand Development Fee. However, the FDD does state that a transfer fee is required. If the transfer is to someone outside of the Bb.Q Chicken system, the transfer fee is 50% of the then-current initial franchise fee. If the transfer is to an existing franchisee, the transfer fee is 20% of the then-current initial franchise fee.
Because the FDD does not specify whether the transferee needs to meet the then-current Brand Development Fee, prospective franchisees should clarify this point with the franchisor. Understanding all potential costs associated with transferring a franchise is essential for financial planning.
It is important to note that the Brand Development Fund is mentioned in section 4.3, which states that Bb.Q Chicken franchisees must pay a Brand Development Fee. However, this section does not mention the transfer of a franchise. Therefore, it is unclear if the Brand Development Fee is required for a transfer.