Does Bb.Q Chicken have a right of first refusal to acquire a franchisee's business?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| n. | Franchisor's right of first refusal to acquire franchisee's business | Section 14.4 | Within 30 days after notice, we have the option to purchase the transferred interest on 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 |
| Provision | Section in Multi-Unit | Summary | |
|---|---|---|---|
| n. Franchisor’s right of | 11 | We have the right to match the offer | |
| first refusal to acquire | |||
| multi-unit operator’s | |||
| business |
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 have a right of first refusal to acquire a franchisee's business. Specifically, regarding the standard franchise agreement, Bb.Q Chicken has the option to purchase the transferred interest on the same terms and conditions as a proposed transfer. This option is available to Bb.Q Chicken for 30 days after notice of the potential transfer. Bb.Q Chicken also has the right to purchase certain assets of the franchised business upon termination or expiration of the Franchise Agreement.
For multi-unit operators, Bb.Q Chicken also retains a right of first refusal. In the event of a proposed transfer of the multi-unit operator's business, Bb.Q Chicken has the right to match the offer made by a potential buyer. This allows Bb.Q Chicken to maintain control over who becomes a franchisee within their system, whether it's a single-unit or multi-unit operation.
This right of first refusal is a common practice in franchising, allowing franchisors like Bb.Q Chicken to control the transfer of franchise ownership and ensure that new franchisees meet their standards. It also gives Bb.Q Chicken the option to expand its corporate ownership by acquiring existing franchise locations. Prospective franchisees should understand that if they decide to sell their Bb.Q Chicken franchise, they may be required to offer the business to Bb.Q Chicken first, potentially limiting their options for selling to another buyer.