What constitutes a non-curable default under the B Bops Development Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| G. "Cause" defined-curable defaults1 | Section 11 | You will have thirty days after receipt of written notice to cure any default in the performance of any covenant or obligation under the Development Agreement (apart from any obligation as to which no right of cure exists - see below). |
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| H. "Cause" defined-non-curable defaults1 | Section 11 | Use of the Licensed System or the Licensed Marks at any location except as authorized by a franchise agreement with the Company; insolvency proceedings (including an assignment for the benefit of creditors, appointment of a receiver or similar officer or the commencement of bankruptcy proceedings) involving you or any of your owners who hold a controlling interest or who are responsible for management; conviction or plea of guilty or no contest by you or any of your owners to any felony or any crime relating to operation of any Franchise; any purported transfer of the Development Agreement, the development rights or any ownership interest which fails to comply with Section 13 of the Development Agreement; termination of any franchise agreement with the Company; and any willful or fraudulent misrepresentation to the Company in connection with the development rights. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, there are specific instances defined as non-curable defaults under the Development Agreement. These defaults, as outlined in Section 11, include using the B Bops Licensed System or Licensed Marks at unauthorized locations, involvement in insolvency proceedings, or assignment for the benefit of creditors.
Further non-curable defaults involve certain legal issues, such as a conviction or guilty plea to any felony or crime related to the operation of any B Bops franchise by the franchisee or any owner with a controlling interest. Also included is any transfer of the Development Agreement, development rights, or ownership interest that does not comply with Section 13 of the Development Agreement.
Additional non-curable defaults are the termination of any existing franchise agreement with B Bops and any deliberate or fraudulent misrepresentation made to B Bops regarding the development rights. These defaults are considered severe enough that B Bops can terminate the Development Agreement without providing an opportunity for the franchisee to correct the issue.