conditional

What is the significance of the 'Accepted Location' for a Bb.Q Chicken franchise?

Bb_Q_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

as "Marks");

WHEREAS, we and our affiliate continue to develop, use and control the use of such Marks in order to identify for the public the source of services and products marketed thereunder and under the System, and to represent the System's high standards of quality, appearance and service;

WHEREAS, you understand and acknowledge the importance of our high standards of quality, cleanliness, appearance and service and the necessity of operating the business franchised hereunder in conformity with our standards and specifications; and

WHEREAS, you desire to use the System in connection with the operation of a restaurant at the location accepted by us as herein provided, as well as to receive the training and other assistance provided by us in connection therewith.

NOW, THEREFORE, the parties, in consideration of the mutual undertakings and commitments set forth herein, the receipt and sufficiency of which are hereby acknowledged, agree as follows:

ARTICLE 1 GRANT

1.1 Grant of Franchise

In reliance on your representations and warranties hereunder, we hereby grant to you, upon the terms and conditions in this Agreement, the right and license, and you hereby accept the right and obligation, to operate a bb.q Chicken restaurant or an essential version or food truck under the Marks and the System in accordance with this Agreement ("Restaurant", "Essential", "Food Truck", or "Franchised Business"). You have represented to us that you have entered into this Agreement with the intention to comply fully with the obligations to construct a Franchised Business hereunder and not for the purpose of reselling the rights to develop the Franchised Business hereunder. You understand and acknowledge that we have granted such rights in reliance on the business skill, financial capacity, personal character of, and expectations of performance hereunder by, you and the Principal(s) and that this Agreement and the rights and obligations hereunder may not be transferred until after the Franchised Business is open to the public in accordance with Section 2.6, and then only in accordance with Article 16 hereof. You will offer and sell alcoholic beverages from your Restaurant, and you will comply with all applicable laws and licensing requirements related thereto, and, further, you will obtain any insurance coverages required relating to the offer and sale of alcoholic beverages.

1.2 Accepted Location

The specific street address of the Restaurant location accepted by us shall be set forth in Attachment 1 (or "Accepted Location"). You shall not relocate the Restaurant without our express prior written consent, which consent shall not be unreasonably withheld. This Agreement does not grant to you the right or license to operate the Restaurant or to offer or sell any products or services described under this Agreement at or from any other location.

1.3 Relocation

If you are unable to continue the operation of the Restaurant at the Accepted Location because of the occurrence of a force majeure event (as described in Section 17.1.3(e)), then you may request our approval to relocate the Restaurant to another location in the Designated Territory, as that term is defined below, which approval shall not be unreasonably withheld. Any other relocation outside the Designated Territory or a relocation of the Restaurant not caused by force majeure shall also be subject to our prior approval and we reserve the right to withhold approval of any proposed relocation outside of the Designated Territory, in our sole discretion. If we elect to grant you the right to relocate the Restaurant, then you shall comply with the site selection and construction procedures set forth in Article 2. If the Restaurant will be relocated outside the Designated Territory, then you agree to pay us a relocation fee equal to one hundred percent (100%) of the then-current initial franchise fee. We shall issue a revised Attachment 1, in accordance with Section 1.2, to reflect the new address of the Accepted Location.

1.4 Designated Territory

Upon the execution of this Agreement or the determination of an Accepted Location, whichever occurs later, you will be assigned a designated geographical area (the "Designated Territory") that will be described in Attachment 1 hereto. You understand and acknowledge that if your Accepted Location is a Non-Traditional Site (as described in Section 1.5 below), you will not receive a Designated Territory. You further understand and acknowledge that the Designated Territory is not exclusive to you, and we may choose to exercise the rights reserved to us in Section 1.5 below. Except as provided in this Agreement, and subject to your and the Principals' material compliance with this Agreement, any other agreement among you or any of your affiliates (defined for the purposes hereof as any entity that is controlled by,

controlling or under common control with such other entity) and us, we shall not establish or authorize any other person or entity, other than you, to establish a bb.q Chicken Franchised Business in the Designated Territory during the term of this Agreement and any extensions hereof, so long as you are not in default under this Agreement or this Agreement has not been terminated. You acknowledge and understand that the rights granted hereunder pertain only to the establishment of dedicated bb.q Chicken Franchised Business. You acknowledge and agree that our parents and/or affiliates may currently operate, or may in the future operate, food service businesses under different marks and with operating systems that are the same as or similar to the System, and that any such businesses might compete with your Franchised Business. You further agree and acknowledge that the license granted hereby is only of one (1) Restaurant, only at the Accepted Location, or one (1) Food Truck, and only from within the boundaries of the Designated Territory. Except as otherwise specified in this Agreement, we reserve the right to open, operate or franchise bb.q Chicken outlets around, bordering, and adjacent to the Designated Territory.

4.4.1 Solicitation and Sales Restrictions. You must target the advertising within the Designated Territory and may only solicit sales from customers located within the Designated Territory.

Source: Item 23 — RECEIPTS (FDD pages 62–283)

What This Means (2025 FDD)

According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the 'Accepted Location' is a crucial element in the franchise agreement. Bb.Q Chicken grants the franchisee the right to operate a restaurant, essential version, or food truck at a location that Bb.Q Chicken has approved. This location must adhere to Bb.Q Chicken's standards and specifications. The franchisee acknowledges the importance of maintaining Bb.Q Chicken's high standards of quality, cleanliness, appearance, and service at this location.

Within 60 days of signing the Franchise Agreement, the franchisee must find a site that meets Bb.Q Chicken's site evaluation guidelines. The franchisee needs to submit a description of the site and evidence that it meets these guidelines. Bb.Q Chicken then has 30 days to approve or disapprove the proposed site. The FDD emphasizes that Bb.Q Chicken's approval doesn't guarantee the franchisee's success or profitability at that location; it only means the site meets Bb.Q Chicken's minimum criteria. The franchisee must provide a copy of the signed lease within 90 days of signing the Franchise Agreement, or the agreement may be terminated.

The 'Accepted Location' also determines whether the franchisee receives a designated territory. If the location is a Non-Traditional Site, the franchisee will not receive a Designated Territory. If a Designated Territory is assigned, Bb.Q Chicken agrees not to establish or authorize another franchisee within that territory, as long as the franchisee is in compliance with the agreement. However, this exclusivity applies only to dedicated Bb.Q Chicken Franchised Businesses, and Bb.Q Chicken's parents or affiliates may operate competing food service businesses under different brands. The franchise license applies only to one restaurant or food truck at the Accepted Location within the Designated Territory, and Bb.Q Chicken reserves the right to open or franchise other outlets around the Designated Territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.