Under what conditions can Bb.Q Chicken require assignment of the lease for the franchised business?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
18.11 Assignment of Lease
If you operate the Franchised Business under a lease for the Franchised Business's premises with a third party or, with respect to any lease for equipment used in the operation of the Franchised Business, then you shall, at our option, assign to us any interest which we have in any lease or sublease for the premises of the Franchised Business or any equipment related to the operation of the Franchised Business. We may exercise such option at or within thirty (30) days after either termination or (subject to any existing right to a successor option) expiration of this Agreement. In the event we do not elect to exercise our option to acquire the lease or sublease for the Franchised Business premises or do not have such option, you shall make such modifications or alterations to the Franchised Business as are necessary to distinguish the appearance of the Restaurant or Food Truck from that of other Restaurants or Food Trucks operating under the System and shall make such specific additional changes as we may reasonably request. If you fail or refuse to comply with the requirements of this Section 18.11, we shall have the right to enter upon the premises of the Franchised Business, without being guilty of trespass or any other crime or tort, to make or cause to be made such changes as may be required, at your expense, which expense you agree to pay upon demand. Notwithstanding the provisions of this Section 18.11 to the contrary, in the event the lease is assigned to us, we hereby indemnify and hold harmless you and any guarantors under said lease, for any breach by us or our successors or assigns from any liability arising out of the lease for the Restaurant premises from and after the date of the assignment of lease.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Bb.Q Chicken has the option to require a franchisee to assign any interest in the lease or sublease for the premises of the franchised business or any equipment related to the operation of the franchised business. This condition applies if the franchisee operates the franchised business under a lease with a third party. Bb.Q Chicken can exercise this option within 30 days after the termination or expiration of the Franchise Agreement.
If Bb.Q Chicken does not exercise its option to acquire the lease, the franchisee must modify the franchised business to differentiate its appearance from other Bb.Q Chicken restaurants or food trucks. The franchisee must also make any additional changes reasonably requested by Bb.Q Chicken. Failure to comply with these requirements gives Bb.Q Chicken the right to enter the premises and make the necessary changes at the franchisee's expense.
However, if the lease is assigned to Bb.Q Chicken, Bb.Q Chicken will indemnify and hold harmless the franchisee and any guarantors under the lease from any liability arising out of the lease for the restaurant premises from and after the date of the assignment. This protects the franchisee from liabilities related to the lease after the assignment has taken place.