Under what condition is the Transfer Fee waived for a Bb.Q Chicken franchise?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (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. |
| Inspection / Product | Reimbursement of our actual costs and travel expenses, (but not more than $1,500) | On demand | Payable if you request that we evaluate a product or supplier that we have not previously approved and that you want to use for your Restaurant or Food Truck. |
| and Supplier | |||
| Evaluation | |||
| Liquidated Damages | See |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the standard transfer fee is waived under a specific circumstance. The franchise agreement outlines that the standard transfer fee, which is 100% of the then-current initial franchise fee for a single unit franchise, is waived for a one-time transfer. This waiver applies exclusively when the transfer occurs from individual(s) to a corporate entity. This corporate entity must be specifically formed for the convenience of ownership of the Bb.Q Chicken franchise.
This condition provides an opportunity for franchisees who initially establish their business as individuals to later incorporate without incurring an additional fee. This can be particularly beneficial for liability and tax purposes as the business evolves. However, it is important to note that this waiver is a one-time exception. Any subsequent transfers, even to another corporate entity or back to an individual, would likely be subject to the standard transfer fee.
Prospective Bb.Q Chicken franchisees should carefully consider their long-term business structure and ownership plans. If incorporating is a likely future step, understanding this waiver can help in financial planning. It's also crucial to document the initial transfer to a corporate entity properly to ensure the waiver is applied correctly, as this is a one-time opportunity to avoid the transfer fee.