Does Bb.Q Chicken have the right to unreasonably withhold consent for a Restricted Transfer?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2.2 If you wish to transfer all or part of your interest in the Franchised Business, any of the Franchised Business's material assets (except as provided in Section 14.2.1 above) or this Agreement, or if you or a Principal wishes to transfer or permit a transfer of any ownership interest in you, then in each such case (any or all of which are referred to in this Article 14 as a "Restricted Transfer"), transferor and the proposed transferee shall apply to us for our consent.
We shall not unreasonably withhold our consent to a Restricted Transfer.
We may, in our sole discretion, require any or all of the following as conditions of our approval:
(a) All of the accrued monetary obligations of you or any of your affiliates and all other outstanding obligations to us arising under this Agreement or any other agreement shall have been satisfied in a timely manner and you shall have satisfied all trade accounts and other debts, of whatever nature or kind, in a timely manner;
(b) You and your affiliates shall not be in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you or any of your affiliates and us or any of our affiliates at the time of transaction:
(c) The transferor and its Principal(s) shall have executed a general release, in a form reasonably satisfactory to us, of any and all claims against us, our officers, directors, shareholders, partners, agents, representatives, independent contractors, servants and employees of each of them, in their corporate and individual capacities, including, without limitation, claims arising under this Agreement and federal, state and local laws, rules and regulations;
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Bb.Q Chicken will not unreasonably withhold consent to a Restricted Transfer. A Restricted Transfer occurs when a franchisee wishes to transfer all or part of their interest in the Franchised Business, any of the Franchised Business's material assets, or the Franchise Agreement itself. This also applies if a Principal wishes to transfer any ownership interest in the franchisee.
However, Bb.Q Chicken may require certain conditions to be met before granting approval for a Restricted Transfer. These conditions include ensuring that all accrued monetary obligations and other outstanding debts to Bb.Q Chicken or its affiliates are satisfied in a timely manner. Additionally, the franchisee and its affiliates must not be in default of any provision of the Franchise Agreement or any other agreement with Bb.Q Chicken or its affiliates at the time of the transaction.
Furthermore, Bb.Q Chicken may require the transferor and its Principal(s) to execute a general release, in a form reasonably satisfactory to Bb.Q Chicken, releasing any and all claims against Bb.Q Chicken, its officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees. This release covers claims arising under the Franchise Agreement and federal, state, and local laws, rules, and regulations. These conditions provide Bb.Q Chicken with certain protections during a transfer, but they cannot be used to unreasonably prevent a transfer.