Who bears the expense of implementing modifications to the Licensed System for a B Bops franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that Company may from time to time modify, add to or otherwise revise the Licensed System, the Licensed Marks or the standards as set forth in the Operations Manual, provided that no such modification, addition or revision shall be commercially unreasonable under the circumstances or alter or conflict with the terms of this Agreement.
Franchisee agrees to promptly accept and implement at its expense any of such modifications, additions or other revisions to the Licensed System, the Licensed Marks or the standards as set forth in the Operations Manual within such period of time as Company shall specify.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with implementing modifications, additions, or revisions to the Licensed System. This includes changes to the Licensed Marks or the standards outlined in the Operations Manual. These modifications are expected to occur periodically to keep up with changing consumer demands and maintain the B Bops brand's public image.
This means that as a B Bops franchisee, you must be prepared to invest further capital into your franchise throughout the term of the agreement to adhere to any system-wide changes B Bops deems necessary. These changes could range from new equipment or updated signage to revised operational procedures. The franchisee is expected to promptly implement these changes within the timeframe specified by B Bops.
While B Bops retains the right to modify the Licensed System, these modifications must be commercially reasonable and not conflict with the existing franchise agreement. However, the determination of what is "commercially unreasonable" can be subjective and could potentially lead to disputes. It is important for a prospective franchisee to understand the scope and potential costs of these modifications and to discuss this aspect of the franchise agreement with existing franchisees and legal counsel.