Under what conditions can Bb.Q Chicken terminate the advertising fund?

According to the 2025 Bb.Q Chicken FDD, Bb.Q Chicken may terminate the Brand Development Fund at any time. However, there are stipulations regarding the use of the funds before termination. Specifically, all monies in the Fund must be spent for advertising or promotional purposes or returned to the contributors (franchisees) on a pro rata basis before the fund can be terminated. Bb.Q Chicken also retains the option to reinstate the Fund at any time after termination, and if reinstated, it will be operated as previously described.

This clause provides Bb.Q Chicken with considerable flexibility in managing the advertising fund. While the company intends for the Fund to be perpetual, it can end the fund when deemed necessary. The requirement to spend the money on advertising or return it to franchisees ensures that the contributions are used appropriately, at least in theory.

For a prospective franchisee, this means that while contributing 2% of gross sales to the Brand Development Fund, there is no guarantee that the fund will exist indefinitely. However, the franchisee can take some comfort in knowing that the money in the fund will either be spent on advertising or returned to the franchisees if Bb.Q Chicken decides to terminate the fund. It is important to note that Bb.Q Chicken is not a fiduciary of the fund, which means they are not legally obligated to act in the franchisees' best interests regarding the fund's management.