Bb.q Chicken logo

Bb.q Chicken Franchise

Audited Financials
Food and BeverageEst. 2014Fort Lee, NJ
www.bbqchicken.com

Risk Score

Pending analysis

Investment Range

$305,000 - $1,379,000

Franchise Fee

$31,500

Total US Locations

208

Business Summary

bb.q Chicken operates quick service restaurants, essential restaurants, or food trucks specializing in fresh salads, premium sandwiches, chicken wings, grilled and fried chicken with proprietary sauces, and sides like calamari, waffle fries, and coleslaw. These businesses use bb.q Chicken's unique recipes, techniques, and brand elements. The restaurants can be freestanding, in shopping centers, or smaller "essential" versions located within marts or grocery stores. Food trucks offer a mobile quick-service menu.

Corporate History

bb.q Chicken USA, Inc. was established in New Jersey on August 19, 2014, and started offering franchises in the same month. Its parent company, Genesis BBQ Global Co., Ltd., based in South Korea, owns and licenses the "bb.q Chicken" trademarks. bb.q Chicken USA, Inc. does not have any predecessors or affiliates, but its subsidiaries operate three company-owned bb.q Chicken locations—two in New York and one in New Jersey. The company might also expand its offerings to include bb.q Chicken Premium Café and bb.q Chicken and Beer brands in the future.

Financial Overview

Investment Range

$305,000 - $1,379,000

Franchise Fee (Low)

$31,500

Franchise Fee (High)

$50,000

Royalty %

5%

Marketing %

2%

Equipment Costs (Low)

$80,000

Equipment Costs (High)

$280,000

Working Capital

$30,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

bb.q Chicken's FDD highlights a special risk regarding its financial condition, noting that the franchisor's financial statements raise questions about its ability to provide services and support to franchisees. In prior periods, the auditors noted misstatements in assets, equity, and net income for 2022, requiring a prior adjustment. For the 2023 and 2022 financial statements, the auditors issued a qualified opinion due to an inability to obtain sufficient audit evidence regarding inventory quantities. The latest financial statements for 2024, however, received an unqualified opinion.

Financing Details

bb.q Chicken does not offer any direct or indirect financing to its franchisees. This means that franchisees will need to secure all their funding from third-party sources. The franchisor also does not guarantee any notes, leases, or other obligations for its franchisees.

Performance Metrics

Total US Locations

208

Franchised Units

205

Corporate Units

3

Avg Square Footage

1,800

Franchising Since

2014

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew, bb.q Chicken franchisees must notify the franchisor of their intent to renew between 6 and 9 months before their initial term ends. They must be in full compliance with their current Franchise Agreement and all other agreements with bb.q Chicken or its affiliates, and have been current on all payments for the preceding 12 months. Franchisees will need to sign the franchisor's then-current successor franchise agreement and any related documents, which may have different terms and conditions, though fees won't exceed those charged to similarly situated new franchisees. They must also refurbish, upgrade, or renovate their bb.q Chicken business to meet current brand standards. The lease for the business premises must be extended, and a general release of claims against the franchisor must be signed (subject to state law). For suburban locations, the franchisor may also modify the territory boundaries for the successor term.

Training & Support Program

Franchisor Assistance

bb.q Chicken provides pre-opening assistance including site selection guidelines and evaluations, standard architectural and design plans, and a confidential operations manual. They also offer initial training for two people, consisting of five days at headquarters and two weeks of on-site support at the franchisee's location during opening. For ongoing support, bb.q Chicken provides marketing and promotional materials, advice and updates on management and operations, and conducts mandatory training programs and seminars for personnel. Additional on-site training is available upon request for a fee. The franchisor also administers a brand development fund, offers indemnification for proper use of trademarks, and may set maximum prices for certain menu items as permitted by law. Furthermore, bb.q Chicken may hold annual franchisee meetings and mandatory refresher training courses to introduce new products or system changes.

Initial Training Hours

120

Training Location

Corporate headquarters in Fort Lee, New Jersey, and on-site at the franchisee's business.

Ongoing Support

bb.q Chicken provides ongoing support to franchisees through marketing and promotional materials for in-store and local use, as well as advice and written updates to the operations manual on managing and operating the business. They conduct mandatory training programs and seminars for operating principals, general managers, and other personnel. Additional on-site training is available upon request for a fee. The franchisor also administers a brand development fund for system-wide advertising, offers indemnification for proper use of their trademarks, and may set maximum prices for menu items as allowed by law. Furthermore, bb.q Chicken may hold annual franchisee meetings and mandatory refresher training courses to introduce new products or system changes.

Franchise Requirements

Ideal Candidate Profile

bb.q Chicken seeks franchisees who will either be the full-time General Manager themselves or designate an approved Operating Principal who owns at least a 5% interest in the franchise and will work full-time in the business. The Operating Principal must complete the initial training to the franchisor's satisfaction. The General Manager, who may or may not be the Operating Principal, must also be individually acceptable to the franchisor, meet their educational and business experience criteria, complete all required training, and dedicate full-time effort to supervising and managing the bb.q Chicken business.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Full-Time

Territory Type

Non-Exclusive

Territory Size Requirements

bb.q Chicken's franchise territories are defined based on population and location type. For businesses in suburban areas, the designated territory will include a minimum of 10,000 people. For urban areas, the territory will include a minimum of 5,000 people. Additionally, no new franchised bb.q Chicken outlets will be established within a half-mile radius of an existing one. For multi-unit operators, the development area is typically described by municipal or county boundaries or as a specific trade area, with its size varying based on market conditions, population, and the operator's resources.

Staffing Notes

Each bb.q Chicken business must have a General Manager who is responsible for daily operations, devoting full-time effort, meeting specific educational and business criteria, and completing all required training. If the franchisee is not personally involved full-time, an Operating Principal, owning at least a 5% interest, must be designated to work full-time in the business. All staff with access to confidential information, including the General Manager, must sign confidentiality and non-competition agreements. Additionally, all managers and other designated employees are required to be ServSafe/TIPS certified.