What was the royalty payable for Bb.Q Chicken as of December 31, 2023?

According to Bb.Q Chicken's 2025 Franchise Disclosure Document, as of December 31, 2023, the company had a royalty payable to its Parent Company of $3,567,619. Additionally, total royalty expenses to the Parent Company for the year ended December 31, 2023, amounted to $3,351,968. These figures reflect the financial obligations Bb.Q Chicken had to its Parent Company regarding royalty payments at that time.

These related party transactions are important for prospective franchisees to understand. The payable amount represents an outstanding debt, while the royalty expenses reflect the ongoing costs associated with the franchise agreement. It's common for franchise systems to have royalty arrangements, but the specific amounts and terms can vary significantly.

A prospective Bb.Q Chicken franchisee should investigate the details of the royalty agreement, including how the royalty rate is calculated (e.g., as a percentage of gross sales), when and how royalties are paid, and whether there are any factors that could cause the royalty rate to change over time. Understanding these details is crucial for accurately forecasting expenses and assessing the overall profitability of the franchise.

Furthermore, it is important to note that the royalty expense agreement between Bb.Q Chicken and its Parent was amended, reducing the Parent's royalty portion to half of its previous amount. A portion of this adjustment was recognized in the current reporting period. This change could impact future royalty expenses and should be considered when evaluating the financial performance of the franchise.