What actions related to bankruptcy or insolvency proceedings would constitute a default for a B Bops developer?

According to B Bops's 2025 Franchise Disclosure Document, certain bankruptcy or insolvency proceedings involving the developer can trigger a default under the Development Agreement. Specifically, if the developer makes an assignment for the benefit of creditors, or if a receiver, trustee, or similar officer is appointed for the developer or its assets, it constitutes a default. Furthermore, the commencement of bankruptcy or other insolvency proceedings by or against the developer also triggers a default.

This default extends to the developer's key stakeholders. If the developer is a partnership, corporation, or limited liability company, bankruptcy or insolvency events affecting any partner, shareholder, or member with a controlling interest or management responsibility also constitute a default. This provision ensures that B Bops can terminate the agreement if the developer's financial stability or management is significantly compromised.

If any of these events occur, B Bops has the right to terminate the Development Agreement by providing notice to the developer. If the default event falls within the specified paragraphs (1) through (6), the termination is effective immediately upon the developer's receipt of written notice, without any opportunity to cure the default. This immediate termination clause underscores the seriousness with which B Bops views these types of financial and legal defaults, as they can directly impact the developer's ability to fulfill their obligations under the agreement.