Under what conditions can the Bb.Q Chicken Brand Development Fund be terminated?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Although the Brand Development Fund is intended to be of perpetual duration, we may terminate the Brand Development Fund.
The Brand Development Fund shall not be terminated, however, until all monies in the Brand Development Fund have been expended for advertising or promotional purposes or returned to contributing Franchised Businesses or those operated by us, without interest, on the basis of their respective contributions.
- 8.3.5 If we elect to terminate the Brand Development Fund, we may, in our sole discretion, reinstate the Brand Development Fund at any time.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the Brand Development Fund, while intended to be of perpetual duration, may be terminated by Bb.Q Chicken. However, the fund cannot be terminated until all monies in the fund have been expended for advertising or promotional purposes. Alternatively, the remaining funds can be returned to contributing franchised businesses or those operated by Bb.Q Chicken, without interest, based on their respective contributions.
This condition ensures that franchisees' contributions to the Brand Development Fund are used as intended, either for marketing and advertising to benefit the Bb.Q Chicken system or returned to the contributors. This protects franchisees from the franchisor potentially misusing the funds if the Brand Development Fund is terminated.
Bb.Q Chicken also retains the right to reinstate the Brand Development Fund at any time, should they elect to terminate it. If reinstated, the fund will operate as described in the franchise agreement. This provides Bb.Q Chicken with flexibility in managing the brand's marketing and advertising strategy.