What is the condition for the Developer to operate B Bops Restaurants?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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Restaurants within the Trade Area in accordance with the Development Schedule and with the terms and conditions of this Agreement. Developer further agrees to develop, own, operate, maintain and promote each B-Bop's Restaurant (hereinafter referred to as a "Unit") in accordance with the terms and conditions contained in the standard form of franchise agreement being utilized by Company to grant B-Bop's Restaurant franchises at the time of development of each such Unit (hereinafter referred to as a "Unit Franchise Agreement"), to be executed by Developer as specified in Section 6 hereof. Company agrees that it shall not establish, or license any third party to establish, a B-Bop's Restaurant in the Trade Area prior to the termination or expiration of this Agreement.
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- TERM. The term of this Agreement and of the development rights granted hereunder shall commence upon the effective date of this Agreement and shall continue until the date specified in Appendix II attached hereto, unless terminated earlier in accordance with Section 11 hereof. Termination or expiration of this Agreement shall constitute a termination or expiration of the development rights granted hereunder. This Agreement and the development rights may be renewed upon such terms and conditions as Company and Developer may mutually agree upon expiration of the term hereof.
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- DEVELOPMENT FEE. In consideration of the development rights granted by Company hereunder, Developer agrees to pay Company by certified or cashier's check the development fee specified in Appendix III attached hereto upon execution of this Agreement. Such fee shall be deemed fully earned upon execution of this Agreement and shall not be refundable to Developer under any circumstances. Any deposit paid by Developer prior to execution of this Agreement shall be applied toward satisfaction of the development fee. A portion of such development fee, to be specified in Appendix III attached hereto, shall be applied by Company toward the initial franchise fee payable under the Unit Franchise Agreement executed for each Unit developed by Developer pursuant to this Agreement. Company and Developer acknowledge and agree that the payment terms imposed by this Agreement with respect to the development fee and the initial franchise fee payable for Units developed pursuant hereto are in lieu of and supersede the terms of any Unit Franchise Agreement relating to the amount and time of payment of the initial franchise fee.
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- TIMELY PERFORMANCE. The development rights provided hereunder have been granted by Company in reliance upon Developer's representations and assurances, among others, that the conditions set forth in this Agreement will be satisfied on a timely basis. Where Developer has exhibited due diligence in complying with the terms and conditions of this Agreement and the Development Schedule, Company may, in its sole discretion, grant an extension of the time requirements imposed by the Development Schedule. No such extension shall be valid unless in writing and executed by an officer of Company. Company and Developer acknowledge and agree that the Development Schedule imposed herein is in lieu of and supersedes the terms of any Unit Franchise Agreement with respect to the allowable time period for construction and opening of any Unit established pursuant to this Agreement.
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- SITE SELECTION. Developer acknowledges that Developer shall be responsible to select and secure a site acceptable to Company for the location of each Unit to be developed
pursuant to this Agreement. Developer agrees to submit a written report to Company of each proposed site for a Unit in the Trade Area, containing such information or material as Company may reasonably request. Company shall review the submitted materials, conduct such other investigation of the proposed site it determines may be necessary to properly evaluate the same and, in its sole discretion, either approve or reject such site by written notice to Developer within thirty (30) days after receipt of such materials, but such approval is not to be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a Developer must adhere to specific terms and conditions to operate B Bops Restaurants. The Developer is required to develop restaurants within a designated Trade Area, following the Development Schedule outlined in the agreement. They must also comply with the terms and conditions specified in the standard Unit Franchise Agreement used by B Bops at the time each restaurant is developed. This agreement is to be executed by the Developer as detailed in Section 6 of the agreement.
B Bops grants the Developer the exclusive right to develop restaurants in the Trade Area, provided they comply with the Development Schedule. The Developer is responsible for developing, constructing, and opening the restaurants for business. Before entering any binding agreements for a site, the Developer must submit a written report of each proposed site to B Bops for approval. B Bops will then review the materials and approve or reject the site within thirty days.
Upon approval of a site, B Bops will grant the Developer the right to operate a restaurant at that location, assuming the Developer is compliant with the terms of the agreement and all Unit Franchise Agreements. The Developer must then execute the Unit Franchise Agreement within twenty days of receipt and return it with the initial franchise fee. The terms of the Unit Franchise Agreement will govern the franchise relationship for each unit, unless they conflict with the Development Agreement, in which case the Development Agreement prevails.
It's important to note that the rights granted to the Developer are personal, and the Development Agreement cannot be transferred without prior written approval from B Bops. The franchisor relies on the Developer's character, skills, business ability, financial capacity, and attitude when granting these rights. This ensures that the Developer is fully committed and capable of fulfilling their obligations under the agreement.