factual

To whom are the violation fees payable after a Quality Assurance Audit for a Bb.Q Chicken franchise?

Bb_Q_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

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(1) (2) (3) (4)
Fees (1) Amount Due Date Remarks
Insurance Premiums Reimbursement of our costs, plus 10% administrative fee On demand If you do not maintain the required insurance coverages, we have the right (but not the obligation) to obtain insurance on your behalf
Management Fee 10% of Gross Sales, plus expenses If incurred We may step in and manage your Franchised Business in certain circumstances, such as death, disability or prolonged absence. We will charge a management fee if we manage your Franchised Business, and you must reimburse our expenses
POS System Help Up to $100 Monthly Payable to us. Standard help desk support is included in the POS Monthly Fee, but if you require support above the standard level, we will provide it and you will pay this fee.

Source: Item 6 — OTHER FEES (FDD pages 15–21)

What This Means (2025 FDD)

According to Bb.Q Chicken's 2025 Franchise Disclosure Document, if a franchisee's business undergoes a Quality Assurance Audit and violations are assessed, the resulting violation fees are payable to Bb.Q Chicken. The cost of the audit itself, estimated to be between $1,000 and $5,000, may be payable either to Bb.Q Chicken as reimbursement for their costs or directly to the quality assurance auditing company, depending on the specific arrangement Bb.Q Chicken has in place.

This means that Bb.Q Chicken franchisees must maintain operational standards to avoid incurring these violation fees. The audit ensures that the franchise is operating according to Bb.Q Chicken's specifications and that the menu items meet the brand's quality standards. Failing to meet these standards can result in a $500 fee per violation, in addition to the audit costs.

Prospective franchisees should be aware of these potential costs and ensure they understand Bb.Q Chicken's operational standards and quality requirements. It is also important to clarify with Bb.Q Chicken whether the audit costs are paid to them or directly to the auditing company to budget accordingly. Maintaining compliance is crucial to avoid these fees and protect profitability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.