Under what conditions will the Bb.Q Chicken franchise agreement be constructively amended regarding termination rights?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.7 Death or Permanent Disability.
- 11.7.1 The grant of rights under this Agreement is personal to you, and on your death or permanent disability, the executor, administrator, conservator, or other personal representative of yours shall be required to transfer your interest in this Agreement within six (6) months from the date of death or permanent disability to a third party approved by us.
Failure to transfer in accordance with the forgoing will constitute a material default and all that is granted by this Agreement will terminate.
For purposes of this Agreement, the term "permanent disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent such person from providing continuous and material supervision of the operation of your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule during the six (6)-month period from its onset.
- 11.7.2 Upon your death or your claim of permanent disability, you or a representative of yours must notify us of such death or claim of permanent disability within ten (10) days of its occurrence.
Any transfer upon death or permanent disability shall be subject to the same terms and conditions as described in this Section for any inter vivos transfer.
- 11.7.3 Immediately after your death or permanent disability, or while the rights granted under this Agreement are owned by your executor, administrator, guardian, personal representative or trustee, your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule shall be supervised by an interim successor manager satisfactory to us, or we, in our sole discretion, may provide interim management at a fee equal to ten percent (10%) of the gross sales generated by your bb.q Chicken outlet(s) during our operation thereof, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by us, pending transfer of your bb.q Chicken outlet(s) and remaining Minimum Performance Schedule to your lawful heirs or successors.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
Based on the 2025 Bb.Q Chicken Franchise Disclosure Document, the franchise agreement can be terminated due to the death or permanent disability of the franchisee. Specifically, if the franchisee dies or becomes permanently disabled, their representative (executor, administrator, etc.) has six months to transfer the franchise to a third party approved by Bb.Q Chicken. Failure to complete this transfer within the six-month timeframe constitutes a material default, leading to the termination of the agreement.
'Permanent disability' is defined as a mental or physical condition that prevents the franchisee from providing continuous and material supervision of the Bb.Q Chicken outlet for six months from the onset of the disability. Bb.Q Chicken must be notified of the death or claim of permanent disability within ten days of its occurrence. During the period following the death or disability, an interim successor manager, satisfactory to Bb.Q Chicken, must supervise the outlet. Alternatively, Bb.Q Chicken may provide interim management, charging a fee equal to 10% of the gross sales, plus all associated travel and lodging expenses.
Any transfer of the franchise due to death or permanent disability is subject to the same terms and conditions as a regular transfer during the franchisee's lifetime. This includes Bb.Q Chicken's approval of the transferee. This clause ensures that Bb.Q Chicken maintains control over who operates the franchise, even in unforeseen circumstances, and that the brand's standards are upheld. The financial implications of interim management and the need for a quick transfer could place additional burdens on the franchisee's estate or family.