What is the dependency between the B Bops Development Agreement and Appendix III?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon approval of a proposed site, Company shall grant Developer the right and license to own and operate a B-Bop's Restaurant at such site, provided that Developer is in compliance with the terms of this Agreement and the terms of all Unit Franchise Agreements between the parties. Subject to the foregoing, Company shall forward to Developer a Unit Franchise Agreement to be executed with respect to the approved site. The Unit Franchise Agreement shall be the standard form of franchise agreement being utilized by Company to grant franchises at the time of development of each Unit. Developer shall execute the Unit Franchise Agreement in accordance with Company's instructions within twenty (20) days of receipt thereof and return it, together with the initial franchise fee payable for the Unit (as specified in Appendix III), to Company. In the event Developer fails to return the Unit Franchise Agreement and the initial franchise fee to Company within such twenty (20) day period, Company's approval of the site shall be null and void and Developer shall have no rights with respect to such site.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Development Agreement is linked to Appendix III in regards to the initial franchise fee. Specifically, upon B Bops's approval of a proposed site, the company will grant the Developer the right to operate a B Bops Restaurant at that location, assuming the Developer is following the Development Agreement's terms and all Unit Franchise Agreements.
The FDD states that B Bops will then forward a Unit Franchise Agreement to the Developer, who must execute it and return it within 20 days, along with the initial franchise fee, as specified in Appendix III. If the Developer fails to do so, B Bops's site approval becomes void, and the Developer loses rights to that site.
This means that Appendix III of the B Bops Development Agreement contains information about the initial franchise fee that must be paid when a Unit Franchise Agreement is executed for an approved site. A prospective franchisee should carefully review Appendix III to understand the financial obligations associated with each unit they plan to develop under the Development Agreement.