Under what condition is the Relocation Fee payable to Bb.Q Chicken?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| 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. |
| Successor Agreement Fee | 100% of our then- current initial franchise fee for a single unit franchise | Upon signing of successor Franchise Agreement | Payable to us. See Item 17. |
| Relocation Fee | 100% of our then- current initial franchise fee for a single unit franchise | With request for approval of relocation | Payable to us if you request to relocate your Restaurant outside the boundaries of your designated territory. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, a Relocation Fee is payable if a franchisee requests to relocate their Restaurant outside the boundaries of their designated territory. The fee is 100% of Bb.Q Chicken's then-current initial franchise fee for a single unit franchise. This fee is due when the franchisee requests approval for the relocation.
This means that if a Bb.Q Chicken franchisee wants to move their existing restaurant to a new location that is outside of the originally agreed-upon territory, they will have to pay a fee equivalent to the full initial franchise fee that a new franchisee would pay. This fee covers Bb.Q Chicken's costs and efforts in assessing and approving the new location, and ensures that the relocation aligns with the brand's overall strategy and market coverage.
For a prospective franchisee, this highlights the importance of carefully selecting the initial location and understanding the designated territory. Relocating a Bb.Q Chicken restaurant can be a costly endeavor, so it's crucial to conduct thorough market research and consider long-term growth plans before committing to a specific location. Franchisees should also discuss potential relocation scenarios with Bb.Q Chicken during the initial due diligence process to fully understand the implications and requirements.