When is the Transfer Fee due for a Bb.Q Chicken Franchise Agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | Fees (1) | Amount | Due Date | Remarks amount owed, we may terminate the Franchise Agreement. | | Prohibited Product or | $500 each infraction | If incurred | In addition to other remedies available to us, you must pay this fine to us each time we cite you for use of prohibited products and/or services including, but not limited to, use of unapproved third-party delivery services, sales made through the internet or from a location other than your Restaurant or Food Truck, or sales of unapproved food or beverage products, or unapproved novelty items, clothing, and souvenirs. | | Service Fine | | | | | Transfer Fee (Franchise Agreement) | 100% of our then- current initial franchise fee for a single unit franchise. | Upon completion of the transfer | No fee charged for a one- time transfer from individual(s) to a corporate entity formed for convenience of ownership of the franchise | | Transfer Fee (Multi- Unit Operator Agreement) | $1,000 multiplied by the number of Franchised Businesses to be developed under the Multi-Unit Operator Agreement. | Upon completion of the transfer | Payable to us. See Item 17. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the Transfer Fee for a Franchise Agreement is due upon completion of the transfer. The amount of this fee is 100% of Bb.Q Chicken's then-current initial franchise fee for a single unit franchise.
However, there is an exception to this fee. Bb.Q Chicken will not charge a transfer fee for a one-time transfer from individual(s) to a corporate entity formed for convenience of ownership of the franchise. This means that if a franchisee initially owns the franchise as an individual but later incorporates their business, they will not have to pay a transfer fee for this specific type of transfer.
In contrast, the Transfer Fee for a Multi-Unit Operator Agreement is $1,000 multiplied by the number of Franchised Businesses to be developed under the Multi-Unit Operator Agreement, and this fee is also due upon completion of the transfer. It is important for prospective franchisees to understand these different transfer fee structures, as they can significantly impact the costs associated with transferring ownership or restructuring their business.