What constitutes a criminal conviction that would trigger a default under the B Bops Development Agreement?

According to B Bops's 2025 Franchise Disclosure Document, a criminal conviction that would trigger a default under the Development Agreement occurs if the developer, or any partner, shareholder, or member (if the developer is a partnership, corporation, or limited liability company), is convicted of or pleads guilty to any felony or any crime relating to the operation of any B Bops unit.

This means that if the developer or any of its key stakeholders are found guilty of a felony, regardless of the nature, or any crime specifically related to running a B Bops restaurant, the franchisor, B Bops, has grounds to declare a default on the Development Agreement. This clause aims to protect the B Bops brand and ensure that its developers maintain a certain level of integrity and legal compliance in their business operations.

For a prospective B Bops franchisee, this condition underscores the importance of maintaining a clean criminal record and ensuring that all partners or shareholders involved in the development adhere to the same standard. Failure to do so could lead to the termination of the Development Agreement, resulting in the loss of development rights and any associated investments. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand from reputational damage due to criminal activity by franchisees.