Under what conditions can Bb.Q Chicken terminate the Brand Development Fund?
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 Bb.Q Chicken's 2025 Franchise Disclosure Document, Bb.Q Chicken may terminate the Brand Development Fund, although it is intended to be of perpetual duration. However, the Brand Development Fund cannot be terminated until all monies in the fund have been expended for advertising or promotional purposes. Alternatively, the funds can be returned to contributing Franchised Businesses or those operated by Bb.Q Chicken, without interest, based on their respective contributions.
This means that Bb.Q Chicken retains the right to end the Brand Development Fund, but is obligated to use the remaining funds for the benefit of franchisees or return the money to them proportionally. This provides some assurance to franchisees that their contributions to the fund will be used appropriately, even if the fund is discontinued.
Bb.Q Chicken also retains the right to reinstate the Brand Development Fund at any time, should they choose to do so. If reinstated, the fund will operate as described in the Franchise Disclosure Document. This clause provides Bb.Q Chicken with flexibility in managing the Brand Development Fund, but also means that franchisees could be required to contribute to the fund again in the future if it is reinstated.