What is the dependency between the B Bops Development Agreement and the Development Schedule?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Trade Area"); and
WHEREAS, Company and Developer have mutually agreed upon the time schedule set forth in Appendix II attached hereto for the development of B-Bop's Restaurants in the Trade Area (such schedule to be hereinafter referred to as the "Development Schedule"); and
WHEREAS, the terms and conditions contained in this Agreement have been negotiated in reliance upon the unique financial and management ability of Developer to establish a multiple-unit franchise system.
NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
- GRANT AND ACCEPTANCE OF DEVELOPMENT RIGHTS. Company hereby grants to Developer, subject to the terms and conditions of this Agreement, the exclusive right to develop B-Bop's Restaurants in the Trade Area in compliance with the Development Schedule. Developer hereby agrees to develop, construct and open for business B-Bop's
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Restaurants within the Trade Area in accordance with the Development Schedule and with the terms and conditions of this Agreement. Developer further agrees to develop, own, operate, maintain and promote each B-Bop's Restaurant (hereinafter referred to as a "Unit") in accordance with the terms and conditions contained in the standard form of franchise agreement being utilized by Company to grant B-Bop's Restaurant franchises at the time of development of each such Unit (hereinafter referred to as a "Unit Franchise Agreement"), to be executed by Developer as specified in Section 6 hereof. Company agrees that it shall not establish, or license any third party to establish, a B-Bop's Restaurant in the Trade Area prior to the termination or expiration of this Agreement.
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- TERM. The term of this Agreement and of the development rights granted hereunder shall commence upon the effective date of this Agreement and shall continue until the date specified in Appendix II attached hereto, unless terminated earlier in accordance with Section 11 hereof. Termination or expiration of this Agreement shall constitute a termination or expiration of the development rights granted hereunder. This Agreement and the development rights may be renewed upon such terms and conditions as Company and Developer may mutually agree upon expiration of the term hereof.
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- DEVELOPMENT FEE.
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 grants the developer the exclusive right to develop B Bops restaurants within a specified trade area, but this right is contingent upon compliance with the Development Schedule. The Development Schedule, detailed in Appendix II, outlines the specific time frame within which the developer must establish B Bops restaurants in the designated trade area. The Development Agreement explicitly states that the developer must develop, construct, and open B Bops restaurants in accordance with this schedule.
The Development Schedule is a crucial component of the Development Agreement because it sets the pace and expectations for the developer's expansion. The agreement emphasizes that the terms and conditions within it have been negotiated based on the developer's unique financial and management capabilities to establish a multi-unit franchise system. This implies that B Bops expects the developer to adhere strictly to the Development Schedule, reflecting the negotiated capabilities.
Furthermore, the Development Agreement specifies that upon its termination or expiration, the development rights become null and void, and the developer must cease any further attempts to select or develop sites for B Bops restaurants, especially if a Unit Franchise Agreement has not been executed prior to the termination. This underscores the importance of adhering to the Development Schedule, as failure to do so can result in the loss of development rights. The Development Schedule dictates the timeline within which the developer must act to maintain their rights to expand the B Bops brand within their trade area.