Is Bb.Q Chicken required to have the advertising fund statements audited?

According to the 2025 Bb.Q Chicken Franchise Disclosure Document, Bb.Q Chicken is not required to have the advertising fund statements audited. However, Bb.Q Chicken will prepare an annual statement of the operations of the fund, which will be made available to franchisees upon written request.

Bb.Q Chicken has the right to establish and administer a brand development fund to advertise the Bb.Q Chicken system and the products offered by franchised businesses on a regional or national basis. Franchisees must contribute 2% of gross sales for the franchised business each month to the fund, which is paid at the same time and manner as the royalty fee.

For the fiscal year ending December 31, 2024, the brand development fund's expenditures included 10% on production, 63% on media placement, 17% on customer retention programs, 7% on out-of-home placement, and 3% on brand activation. The fund is maintained and administered by Bb.Q Chicken or its designee, with Bb.Q Chicken directing all advertising programs and having sole discretion to approve creative concepts, materials, media, placement, and allocation.