Does Bb.Q Chicken have the right of first refusal to acquire a franchisee's business?

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, Bb.Q Chicken has the option to purchase the transferred interest on the same terms and conditions that the franchisee is offering to a third party. This option is available to Bb.Q Chicken for 30 days after notice of the potential transfer. This applies to both the standard franchise agreement and the Multi-Unit Operator Agreement. For the Multi-Unit Operator Agreement, Bb.Q Chicken has the right to match the offer.

For a prospective franchisee, this means that if they decide to sell their Bb.Q Chicken franchise, they must first offer the business to Bb.Q Chicken on the same terms that they would offer it to another buyer. Bb.Q Chicken then has a specified time frame (30 days) to decide whether to purchase the franchise. If Bb.Q Chicken declines, the franchisee is free to sell to a third party.

This right of first refusal is a fairly common practice in franchising. It allows Bb.Q Chicken to maintain control over who becomes a franchisee and ensures that the business is transferred on terms acceptable to them. It also protects the brand and the existing network of franchisees. Franchisees should carefully consider this provision and its implications for their exit strategy when investing in a Bb.Q Chicken franchise.

It is important to note that the FDD also states that upon termination or expiration of the Franchise Agreement, Bb.Q Chicken has the right to purchase certain assets of the Franchised Business. This is a separate provision from the right of first refusal and gives Bb.Q Chicken another opportunity to acquire the business or its assets under different circumstances.