What transfer fee is required by Bb.Q Chicken if the transferee is outside of the Bb.Q Chicken system?
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, a franchisee who transfers their franchise to someone outside of the Bb.Q Chicken system must pay a transfer fee. This fee is equal to fifty percent (50%) of the then-current initial franchise fee.
This means that if a franchisee decides to sell their Bb.Q Chicken franchise to an unrelated third party, Bb.Q Chicken will collect a transfer fee based on the initial franchise fee at that time. For example, if the initial franchise fee is $50,000 at the time of the transfer, the transfer fee would be $25,000 (50% of $50,000). This fee compensates Bb.Q Chicken for the administrative costs and efforts involved in approving the transfer and bringing a new franchisee into the system.
It's important for prospective franchisees to understand this transfer fee, as it can significantly impact the financial implications of selling their franchise in the future. Franchisees should factor this potential cost into their long-term business plans and consider it when evaluating the overall profitability of their Bb.Q Chicken franchise.