What constitutes a willful or fraudulent misrepresentation to B Bops in connection with the development rights?
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). |
|---|---|---|
| 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' 2025 Franchise Disclosure Document, a "willful or fraudulent misrepresentation to the Company in connection with the development rights" constitutes a non-curable default under the Development Agreement. This is outlined in Section 11 of the agreement.
In practical terms, this means that if a B Bops developer intentionally provides false or misleading information to B Bops regarding their development rights, B Bops has grounds to terminate the Development Agreement immediately. Unlike some other defaults, there is no opportunity to correct or 'cure' this type of misrepresentation.
This provision protects B Bops from developers who might try to deceive them about key aspects of their development plans or qualifications. For a prospective developer, it underscores the importance of honesty and transparency in all dealings with B Bops. Any misrepresentation, whether intentional or not, could have serious consequences, including the loss of development rights.