factual

When signing the Bb.Q Chicken agreement, what role must be designated and retained at all times?

Bb_Q_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

ITEM 12 TERRITORY

Franchise Agreement: Your Franchise Agreement will specify the site or address that will be the accepted location for your Restaurant (the "Accepted Location"). Your Franchise Agreement may also specify your territory (the "Designated Territory"). The size and scope of the Designated Territory will be contained in the Franchise Agreement and will be determined based on two criteria: (1) whether the location is in an urban or suburban setting, and (2) how close in proximity it is to an existing bb.q Chicken Franchised Business. An urban area generally consists of contiguous territory having a density of at least 1,000 persons per square mile. A suburban area typically surrounds a major city and is typically made up of single-family detached residences with more green space and a lower population density than an urban area. The sources we use to obtain

population data include the U.S. Census Bureau. If your Franchised Business will be located in a suburban area, your Designated Territory will include a minimum of 10,000 people. If your Franchised Business will be located in an urban area, your Designated Territory will include a minimum of 5,000 people. No new franchised outlets may be established within a half-mile radius of an established bb.q Chicken Franchised Business. If you do not yet have a location at the signing of the Franchise Agreement, you will receive a non-exclusive site search area listed in Attachment 1 of the Franchise Agreement.

If any non-traditional site (such as grocery stores, supermarkets, mall food courts, airports, hospitals, cafeterias, commissaries, schools, hotels, office buildings and stadiums, arenas, ballparks, festivals, fairs, military bases and other mass gathering locations or events) is located within the physical boundaries of your Designated Territory, then the premises of this non-traditional site will not be included in your Designated Territory and you will have no rights to this non-traditional site. If your Restaurant is located at a non-traditional site, you will not receive a Designated Territory.

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 47–48)

What This Means (2025 FDD)

Based on the 2025 Bb.Q Chicken Franchise Disclosure Document, the franchise agreement requires the franchisee to designate an 'Accepted Location' for their restaurant. This location must be specified in the Franchise Agreement. If a location is not yet determined when signing the agreement, a non-exclusive site search area will be provided in Attachment 1. Once a location is approved by Bb.Q Chicken, it will be designated as the 'Accepted Location'.

The 'Designated Territory' may also be specified in the Franchise Agreement, the size and scope of which depends on whether the location is in an urban or suburban setting. An urban area needs a minimum of 5,000 people, while a suburban area needs a minimum of 10,000 people in the designated territory. However, if the restaurant is located at a non-traditional site, such as in an airport or food court, a Designated Territory will not be assigned.

Bb.Q Chicken franchisees should understand that they will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution. The franchisee must operate only from the 'Accepted Location' or, if applicable, a Food Truck within the boundaries of 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.