What specific restrictions on transfer are imposed on Bb.Q Chicken franchisees?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
11.6.7 You or transferee pay to us a transfer fee in the amount of fifty percent 50% of the then current initial franchise fee to transferees outside of the System, or twenty percent (20%) of the then current initial franchise fee to existing franchisees.
11.7 Death or Permanent Disability.
- 11.7.1 The grant of rights under this Agreement is personal to you, and on your death or permanent disability, the executor, administrator, conservator, or other personal representative of yours shall be required to transfer your interest in this Agreement within six (6) months from the date of death or permanent disability to a third party approved by us.
Failure to transfer in accordance with the forgoing will constitute a material default and all that is granted by this Agreement will terminate.
For purposes of this Agreement, the term "permanent disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent such person from providing continuous and material supervision of the operation of your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule during the six (6)-month period from its onset.
- 11.7.2 Upon your death or your claim of permanent disability, you or a representative of yours must notify us of such death or claim of permanent disability within ten (10) days of its occurrence.
Any transfer upon death or permanent disability shall be subject to the same terms and conditions as described in this Section for any inter vivos transfer.
- 11.7.3 Immediately after your death or permanent disability, or while the rights granted under this Agreement are owned by your executor, administrator, guardian, personal representative or trustee, your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule shall be supervised by an interim successor manager satisfactory to us, or we, in our sole discretion, may provide interim management at a fee equal to ten percent (10%) of the gross sales generated by your bb.q Chicken outlet(s) during our operation thereof, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by us, pending transfer of your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule to your lawful heirs or successors.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, several restrictions apply to franchise transfers. A franchisee must pay a transfer fee equal to 50% of the then-current initial franchise fee if the transfer is to someone outside the Bb.Q Chicken system. If the transfer is to an existing franchisee, the transfer fee is 20% of the then-current initial franchise fee.
In the event of the franchisee's death or permanent disability, their representative is required to transfer the franchise interest within six months to a third party approved by Bb.Q Chicken. Failure to do so constitutes a default, leading to termination of the franchise agreement. During this interim period, Bb.Q Chicken requires an interim successor manager, or Bb.Q Chicken may provide interim management at a fee of 10% of gross sales, plus expenses.
Any transfer due to death or disability is subject to the same terms and conditions as a regular transfer. The franchisee or their representative must notify Bb.Q Chicken of the death or disability within ten days of its occurrence. These transfer restrictions are typical in franchising, allowing Bb.Q Chicken to maintain control over who operates its franchises and ensuring brand consistency.