Under what circumstances might Bb.Q Chicken step in and manage my franchised business?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Insurance Premiums | Reimbursement of our costs, plus 10% administrative fee | On demand | If you do not maintain the required insurance coverages, we have the right (but not the obligation) to obtain insurance on your behalf |
| Management Fee | 10% of Gross Sales, plus expenses If incurred | We may step in and manage your Franchised Business in certain circumstances, such as death, disability or prolonged absence. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Bb.Q Chicken may step in to manage a franchised business under specific circumstances. These circumstances include events such as the franchisee's death, disability, or prolonged absence. If Bb.Q Chicken does step in to manage the franchise, the franchisee will be charged a management fee.
The management fee is calculated as 10% of Gross Sales, plus any expenses Bb.Q Chicken incurs while managing the business. This means that in addition to covering the costs of running the franchise during the management period, Bb.Q Chicken will also take a percentage of the revenue generated.
This arrangement ensures that Bb.Q Chicken can maintain the operational standards and brand integrity of the franchise even when the franchisee is unable to do so. However, it also represents a significant cost to the franchisee, as they will be responsible for both the ongoing expenses and a portion of the revenue generated during the management period. Franchisees should clarify the specific conditions that trigger this intervention and the full scope of expenses they might incur.