It depends on how you wish to leave it. If you're going to clean up the spot and go for touching up the paint then by all means sandpaper around the area to feather the paint and at the same time sand away the rust is a fine idea. Then from there you go onto the paint touchup. If the spots are just little things with some staining on the paint surrounding the little chip and all you want to do is "kill" the rust and seal them so that they don't keep staining the paint and bloom out to a crusty brown spot then the BKF treatment will cut back the current crustiness and clean out the chipped spots. From there you can seal it with the boiled linseed oil or with some clear nailpolish as mentioned. Or even some Flecto Varathane varnish if you wish.

If you'd like to touch up the chips with paint and they are just little spots then here's something you can try. I've done this same thing on a couple of bicycles of my own as well as the wife's brand new motorcycle back when I managed to "oopsie" it while installing her saddle bags on the bike. If it can pass the "pissed off wife's new motorcycle" inspection and produce a smile then you KNOW it works....

1. Clean the spot out with the BKF to kill and remove the rust.
2. Mask off the area around each chip with masking tape about 1/16 away from the edges of the chip.
3. Wet sand the spot with 400 grit wetordry paper to feather the edges down into the chipped area. Dry and replace the masking tape as required if it cuts through at the edges and can't limit the sanding to that 1/16 "rim".
4. Once sanded to your satisfaction peel away the masking tape and dry the area. When competely dry use your touchup paint to fill in the spot starting with the first coat just in the middle of the chipped area. After a day add a second coat that is a little bigger. After another day add a third coat that extends out to the edges of the sanded area. If needed continue to add coats at one per day until the area is built up just a touch higher than the surrounding paint job.
5. At this point just leave it alone for a week to thoroughly dry and harden. THIS PART IS IMPORTANT! "New" paint stays soft for at least a week as it takes that long, and longer, for the paint to fully release the solvents. Until those solvents are gone the paint will not be able to be worked well for the follow up steps. Patience is a virtue here. This is NOT a fast fix but it works.
6. Now that a week, or preferably two, has passed remask the area again leaving about 1/16 inch of original paint all around the raised touch up bump(s). Wet sand it using 400 or 600 wetordry paper as appropriate depending on how much of a bump you need to removed. The smoother it is the less coarse the paper should be. Only use the 400 for the initial working down then switch to 600 for the smoothing and blending to the surrounding original paint. Once blended remask to expose about 1/8 inch of the original paint and switch to 1200 grit wetordry used wet. After smoothing it with that switch up to 2000 grit.
7. The sanding is all done so remove the masking. At this point use a clean rag to polish the spot(s) using autobody Rubbing Compound. After that switch to autobody Polishing Compound. And finally a good "deep cleaning" automotive wax for the final step.
   
   Yep, there's a lot of steps. And if there's more than 3 to 4 chips to repair it's likely easier to look at a complete strip and re-paint. But if there are only a few spots or it's a finish that you won't be able to match without spending a fortune this may be an option for you.