What consideration is given for the development rights granted to the Developer by B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- In consideration of the development rights granted to Developer hereunder and in order to induce Company to grant such development rights to Developer, each of the undersigned hereby agrees, jointly, individually and severally, for themselves, their heirs, legal representatives and assigns as follows: (a) that they, and each of them, shall be personally bound by and agree to perform all of the terms, provisions and conditions of this Agreement; (b) that they, and each of them, do hereby personally and unconditionally guarantee full and prompt payment to Company of any indebtedness of Developer arising under or by virtue of this Agreement; (c) that they, and each of them, will not sell, assign or otherwise permit or cause a transfer of the development rights or any partnership or stock interest in Developer without complying with the requirements of Section 13 of the Agreement; (d) that they, and each of them, shall be personally bound by the nondisclosure and noncompete covenants of this Agreement; and (e) that they, and each of them, shall be personally liable for the breach of any provision of this Agreement, including both monetary obligations and any obligation to take or refrain from taking specific actions or activities.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the consideration for the development rights granted to a Developer involves a personal guaranty of obligations under the Multiple-Unit Development Agreement. Specifically, the partners or shareholders of the Developer represent to B Bops Franchising Corp that they are entering into the Multiple-Unit Development Agreement.
In order to induce B Bops to grant these development rights, each partner or shareholder agrees to be personally bound by all terms, provisions, and conditions of the agreement. This includes guaranteeing full and prompt payment of any indebtedness of the Developer arising from the agreement. They also agree not to sell, assign, or transfer the development rights or any interest in the Developer without complying with Section 13 of the agreement.
Furthermore, the partners or shareholders are personally bound by the nondisclosure and noncompete covenants of the agreement and are personally liable for any breach of the agreement, including monetary obligations and obligations to take or refrain from specific actions. This personal guaranty is continuing and irrevocable, and the individuals agree to render any payment or performance required under the agreement upon demand if the Developer fails to do so. This liability is primary and not contingent upon B Bops pursuing remedies against the Developer, and it is not affected by any extensions of time or credit granted to the Developer. The individuals also waive notice of acceptance, demand, protest, nonperformance, and any other notices.