Under what conditions will Bb.Q Chicken approve a transfer of a franchise?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| k. “Transfer” by franchisee – defined | Section 14.2.1 | Includes sale, assignment, conveyance, pledge, mortgage or other encumbrance of any interest in the Franchise Agreement, the Restaurant or Food Truck or you (if you are not a natural person) | |
| l. Franchisor approval of transfer by franchisee | Section 14.2.2 | You must obtain our consent before transferring any interest. We will not unreasonably withhold our consent | |
| m. Conditions for franchisor approval of transfer | Section 14.2.2 | Conditions include: You must pay all amounts due us, not otherwise be in default, sign a general release, and pay a transfer fee. Transferee must meet our criteria, complete training to our satisfaction and sign current Franchise Agreement | |
| n. Franchisor’s right of | Section 14.4 | Within 30 days after notice, we have the | |
| first refusal to acquire | option to purchase the transferred interest on | ||
| franchisee’s business | the same terms and conditions | ||
| o. Franchisor’s option to purchase franchisee’s business | Section 18.11 | Upon termination or expiration of the Franchise Agreement, we have the right to purchase certain assets of the Franchised Business | |
| p. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–55)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, a franchisee must obtain Bb.Q Chicken's consent before transferring any interest in the franchise. Bb.Q Chicken states that it will not unreasonably withhold its consent.
The conditions for Bb.Q Chicken's approval of a transfer include the franchisee paying all amounts due to Bb.Q Chicken, not being in default of the franchise agreement, signing a general release, and paying a transfer fee. Additionally, the person or entity to whom the franchise is being transferred (the transferee) must meet Bb.Q Chicken's criteria for new franchisees, complete training to Bb.Q Chicken's satisfaction, and sign the current Franchise Agreement.
For multi-unit operators, the conditions for transfer are slightly different. These include not being in default, having at least 25% of all required outlets open or under construction, paying all debts, ensuring the buyer meets Bb.Q Chicken's current criteria for new multi-unit operators, executing a general release (where legal), paying a transfer fee, and requiring the buyer to personally guarantee all obligations.
These conditions are typical in franchising, as franchisors want to ensure that any new franchisee is financially stable, well-trained, and committed to upholding the brand's standards. Bb.Q Chicken also retains the right of first refusal to acquire the franchisee's business, allowing them to purchase the transferred interest on the same terms and conditions offered by the potential transferee. This provision enables Bb.Q Chicken to maintain control over its franchise network and ensure that any changes in ownership align with its strategic goals.