Which agreement governs the franchise relationship for each B Bops unit, the Development Agreement or the Unit Franchise Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
EXECUTION OF UNIT FRANCHISE AGREEMENT. Upon approval of a proposed site, Company shall grant Developer the right and license to own and operate a B-Bop's Restaurant at such site, provided that Developer is in compliance with the terms of this Agreement and the terms of all Unit Franchise Agreements between the parties. Subject to the foregoing, Company shall forward to Developer a Unit Franchise Agreement to be executed with respect to the approved site. The Unit Franchise Agreement shall be the standard form of franchise agreement being utilized by Company to grant franchises at the time of development of each Unit. Developer shall execute the Unit Franchise Agreement in accordance with Company's instructions within twenty (20) days of receipt thereof and return it, together with the initial franchise fee payable for the Unit (as specified in Appendix III), to Company. In the event Developer fails to return the Unit Franchise Agreement and the initial franchise fee to Company within such twenty (20) day period, Company's approval of the site shall be null and void and Developer shall have no rights with respect to such site. The parties hereby acknowledge and agree that the terms and conditions of the Unit Franchise Agreement executed for the Unit developed pursuant to this Agreement shall govern and control the franchise relationship for each such Unit, except to the extent that such terms and conditions conflict with the provisions of this Agreement, in which event the provisions of this Agreement shall control. The parties further acknowledge and agree that the terms and conditions of each Unit Franchise Agreement executed pursuant to this Agreement shall remain in full force and effect notwithstanding the expiration and termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Unit Franchise Agreement primarily governs the franchise relationship for each B Bops unit. While a Development Agreement grants the developer the right to develop B Bops restaurants within a specific area, the actual operation of each unit is dictated by the terms of the Unit Franchise Agreement.
Specifically, once a site is approved, B Bops will grant the developer the right to operate a restaurant at that location, provided the developer complies with both the Development Agreement and all Unit Franchise Agreements. The developer must then execute the Unit Franchise Agreement, which will be the standard form B Bops uses at the time for granting franchises. This agreement must be executed and returned with the initial franchise fee within 20 days, or the site approval becomes void.
It's important to note that the Development Agreement takes precedence only when there are conflicts between the two agreements. Otherwise, the Unit Franchise Agreement remains in full effect even if the Development Agreement expires or terminates. This ensures that each B Bops unit operates under a consistent set of rules and regulations, as defined in the Unit Franchise Agreement.