Can the B Bops company request financial statements from the developer?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
The Developer is required by the Development Agreement to submit its financial statements to the Company for review and to consult with the Company regarding its proposals for financing development of the Franchises, all at the request of the Company from time to time.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if you enter into a Development Agreement with B Bops to develop multiple franchise locations, B Bops can request your financial statements. Specifically, B Bops can request these statements for review and consultation regarding your financing proposals for developing the franchises. This is done at the discretion of B Bops and can occur from time to time.
This requirement is part of the Development Agreement, which outlines the terms for establishing multiple B Bops franchises within a defined trade area. The trade area's size and boundaries are negotiated before the agreement is finalized. In exchange for these development rights, you must adhere to a development schedule, establishing a specific number of franchises.
This financial review is a standard practice in multi-unit franchise agreements, allowing B Bops to assess your financial capability to meet the development schedule and ensure the successful expansion of the B Bops brand. Failing to provide the requested financial statements or not consulting with B Bops on financing could potentially lead to a breach of the Development Agreement.