What did B Bops assign to the Company to enable franchising of the B-Bop's Restaurant concept?

According to B Bops's 2025 Franchise Disclosure Document, to enable the Company to franchise the B-Bop's Restaurant concept, B-Bop's assigned ownership of the Licensed System, the Operations Manual, and the Project Manual to the Company effective March 17, 1995. Additionally, on October 3, 1995, B-Bop's executed a separate assignment to the Company of the copyrights in the Operations Manual and the Project Manual. As partial consideration for the assignment, the Company entered into a license agreement with B-Bop's granting a license to B-Bop's to use the Licensed System, the Licensed Marks, the Project Manual and the Operations Manual subject to certain restrictions and limitations. The license agreement is discussed in Item 13 under the paragraph heading "Material Agreements".

This assignment is a crucial step in establishing the franchise system, as it consolidates the intellectual property rights necessary for franchising under the Company. Without these rights, the Company would not be able to legally authorize franchisees to operate B-Bop's restaurants using the established system and materials.

The fact that B Bops, the assignor, received a license back to use the system indicates that it likely continues to operate its own B-Bop's restaurants. This arrangement allows the original B-Bop's to continue its business while enabling the Company to expand the brand through franchising. Prospective franchisees should review Item 13 to understand the specific restrictions and limitations of the license agreement between B Bops and the Company, as these could potentially impact the franchise system.

It is also important to note that the Company claims a copyright in the confidential Operations Manual and in the plans and specifications for construction of the unique B-Bop's Restaurant premises. The copyright in the Project Manual containing the plans and specifications has been registered under Registration TX4-033-760 (issued February 21, 1995) and the copyright in the Architectural Work has been registered under Registration VA-690-159 (issued March 1, 1995). Both registrations were originally obtained by B-Bop's and have been assigned to the Company as part of the assignment of the Licensed System from B-Bop's to the Company. The Company intends to renew the copyright registrations prior to their expiration.