What transfer fee is required by Bb.Q Chicken if the transferee is an existing Bb.Q Chicken franchisee?
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.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the transfer fee depends on whether the transferee is already part of the Bb.Q Chicken franchise system. If an existing Bb.Q Chicken franchisee is the transferee, the transfer fee is 20% of the then-current initial franchise fee. However, if the transferee is someone outside the Bb.Q Chicken system, the transfer fee increases to 50% of the then-current initial franchise fee.
This difference in transfer fees incentivizes existing franchisees to expand within the Bb.Q Chicken system. It acknowledges their familiarity with the brand's operations and standards, reducing the risk associated with bringing in a completely new franchisee. The initial franchise fee can vary, so the actual dollar amount of the transfer fee will depend on what the current initial franchise fee is at the time of the transfer.
For a prospective franchisee, this means that if they later decide to sell their franchise to another existing Bb.Q Chicken franchisee, they will pay a lower transfer fee than if they sold to someone new to the system. This could make their franchise more attractive to potential buyers who are already part of the Bb.Q Chicken network. It's important to note that the transfer is still subject to Bb.Q Chicken's approval and other conditions outlined in the Franchise Agreement.