How are Bb.Q Chicken royalty and brand development fees withdrawn?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
of Gross Sales.
The royalty fee and brand development fee will be withdrawn from your designated bank account by electronic funds transfer ("EFT") on the 15th of each month based on the Gross Sales for the previous month. If you do not report your Gross Sales, we may debit your account for 120% of the last royalty fee and brand
development fee that we debited. If you do not report revenues for any reporting period, then we will collect 120% of the last Royalty Fee and Brand Development Fee collected and settle the balance the next period in which you report revenue. You are required to set up authorization at your bank to allow us to electronically transfer funds from your bank account to our bank account.
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, both the royalty fee and the brand development fee are collected via electronic funds transfer (EFT) from the franchisee's designated bank account. These withdrawals occur on the 15th of each month and are based on the Gross Sales from the previous month. To facilitate this process, franchisees are required to authorize their bank to allow Bb.Q Chicken to electronically transfer funds from their account to the company's account.
If a Bb.Q Chicken franchisee fails to report their Gross Sales, Bb.Q Chicken has the right to debit the franchisee's account for an amount equal to 120% of the last royalty fee and brand development fee that was debited. If the franchisee continues to not report revenues for any reporting period, Bb.Q Chicken will still collect 120% of the last Royalty Fee and Brand Development Fee collected and settle the balance the next period in which the franchisee reports revenue.
This electronic funds transfer system ensures that Bb.Q Chicken receives timely payments of royalties and brand development fees, while also placing the onus on the franchisee to accurately report gross sales. The policy of debiting 120% of the previous payment in cases of unreported sales acts as a deterrent for underreporting or failing to report sales figures, but also ensures that Bb.Q Chicken continues to receive some income even when sales data is missing.