What section of the Bb.Q Chicken Franchise Agreement defines 'transfer' by franchisee?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| k. | "Transfer" by franchisee – defined | Section 14.2.1 | Includes sale, assignment, conveyance, pledge, mortgage or other encumbrance of any interest in the Franchise Agreement, the Restaurant or Food Truck or you (if you are not a natural person) |
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, Section 14.2.1 of the Franchise Agreement defines what constitutes a 'transfer' by the franchisee. This definition is important because it outlines the various actions that Bb.Q Chicken considers to be a transfer of interest in the franchise.
The definition includes a sale, assignment, conveyance, pledge, mortgage, or other encumbrance of any interest in the Franchise Agreement. It also applies to the Restaurant or Food Truck itself. If the franchisee is not a natural person (i.e., is a corporation or other entity), the definition applies to the transfer of interest in the franchisee entity.
This means that a franchisee needs to be aware of these stipulations, as any of these actions would be considered a transfer and would be subject to the transfer provisions outlined in the Franchise Agreement, such as requiring Bb.Q Chicken's approval and potentially triggering a transfer fee.