During the term of the Bb.Q Chicken franchise, what non-competition covenants apply to the franchisee?

According to Bb.Q Chicken's 2025 Franchise Disclosure Document, franchisees are subject to non-competition covenants during the term of the franchise agreement. Specifically, franchisees are prohibited from operating or having any ownership interest in a business similar to Bb.Q Chicken without obtaining prior written consent from the franchisor. This restriction is subject to state law, meaning the enforceability and specific terms may vary depending on the franchisee's location. However, this restriction does not apply to Restaurants or Food Trucks operated under Franchise Agreements with Bb.Q Chicken.

For a prospective Bb.Q Chicken franchisee, this means that while operating a Bb.Q Chicken franchise, they generally cannot be involved in running or owning a competing business. This is a fairly standard practice in franchising, designed to protect the Bb.Q Chicken brand and prevent franchisees from using the franchisor's confidential information and business model to benefit a competing venture. The need for written consent provides some flexibility, as Bb.Q Chicken may allow involvement in other businesses in certain circumstances, but franchisees should not assume such consent will be granted.

It is important to note that this non-competition covenant applies 'during the term of the franchise.' A separate non-competition covenant applies after the franchise is terminated or expires. Franchisees should carefully review Section 10.3.1 of the Franchise Agreement (or Section 12 of the Multi-Unit Operator Agreement) and consult with an attorney to fully understand the scope and enforceability of these restrictions in their specific state.