What actions related to bankruptcy or insolvency proceedings would constitute a default under the B Bops Development Agreement?

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 constitutes a default.

This also applies if the developer is a partnership, corporation, or limited liability company. In such cases, these bankruptcy or insolvency events occurring with respect to any partner, shareholder, or member who owns a controlling interest in the developer or who has any responsibility for the management of the developer will also be considered a default under the Development Agreement.

This provision is fairly standard in franchising, as the financial stability of the developer is critical to fulfilling the development schedule and maintaining the B Bops brand's integrity. A default allows B Bops to terminate the agreement, protecting its interests and ensuring that development rights are held by a financially sound entity. Prospective franchisees should carefully consider their financial situation and business structure to avoid triggering these default provisions.