Does Bb.Q Chicken have any restrictions on assigning its Multi-Unit Operator Agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi-Unit | Summary | |
|---|---|---|---|
| Operator Agreement | |||
| k. “Transfer” by multi- | 11 | Includes transfer of any interest in the Multi- | |
| unit operator –defined | Unit Operator Agreement | ||
| l. Franchisor approval of transfer by multi-unit operator | 11 | We have the right to approve all transfers, our consent not to be unreasonably withheld | |
| m. Conditions for franchisor approval of transfer | 11 | Conditions for transfer include not being in default, at least 25% of all outlets required to be developed are open or under construction, all debts are paid, the buyer meets our current criteria for new multi-unit operators, execution of a general release (where legal), payment of transfer fee, buyer personally guarantees all obligations | |
| n. Franchisor’s right of | 11 | We have the right to match the offer | |
| first refusal to acquire | |||
| multi-unit operator’s | |||
| business | |||
| p. Death or disability of | 11 | Interest must be transferred to an approved | |
| multi-unit operator | party within 12 months |
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, Bb.Q Chicken does place restrictions on a multi-unit operator's ability to assign their Multi-Unit Operator Agreement. Bb.Q Chicken retains the right to approve all transfers, and their consent will not be unreasonably withheld.
The FDD outlines specific conditions that must be met for Bb.Q Chicken to approve a transfer. These conditions include ensuring the multi-unit operator is not in default of the agreement. Additionally, at least 25% of all outlets required to be developed must be open or under construction. All debts owed to Bb.Q Chicken must be paid, and the buyer must meet Bb.Q Chicken's current criteria for new multi-unit operators. The buyer must also execute a general release (where legal) and pay a transfer fee. Furthermore, the buyer is required to personally guarantee all obligations under the Multi-Unit Operator Agreement.
Bb.Q Chicken also retains the right of first refusal to acquire the multi-unit operator's business, meaning they can match any offer made by a potential buyer. In the event of the death or disability of the multi-unit operator, the interest must be transferred to an approved party within 12 months. These provisions ensure that Bb.Q Chicken maintains control over who becomes a multi-unit operator and that the brand's standards and financial obligations are upheld.