Under what circumstances can Bb.Q Chicken exercise its Step-In Rights to operate my franchise?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, in the event of the franchisee's death or claim of permanent disability, Bb.Q Chicken has the right to provide interim management of the Bb.Q Chicken outlet. This is pending the transfer of the franchise to lawful heirs or successors.
During this interim management period, Bb.Q Chicken will supervise the Bb.Q Chicken outlet. Alternatively, Bb.Q Chicken may provide interim management themselves. If Bb.Q Chicken provides the interim management, they will collect a fee equal to ten percent (10%) of the gross sales generated by the Bb.Q Chicken outlet. They will also be reimbursed for any costs of travel, lodging, meals, and other expenses reasonably incurred.
This arrangement is designed to ensure the continued operation of the Bb.Q Chicken franchise during a period of uncertainty and transition. It protects the brand's reputation and provides a source of income while the franchise's future ownership is resolved. The franchisee or their representative must notify Bb.Q Chicken of the death or claim of permanent disability within ten (10) days of its occurrence.
It is important for a prospective Bb.Q Chicken franchisee to understand these conditions, as they outline the responsibilities and financial implications in the event of death or permanent disability. This is a fairly standard clause in franchise agreements to ensure business continuity.