What is the dependency between the B Bops Development Agreement and Section 6?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- EXECUTION OF UNIT FRANCHISE AGREEMENT. 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. The parties hereby acknowledge and agree that the terms and conditions of the Unit Franchise Agreement executed for the Unit developed pursuant to this Agreement shall govern and control the franchise relationship for each such Unit, except to the extent that such terms and conditions conflict with the provisions of this Agreement, in which event the provisions of this Agreement shall control. The parties further acknowledge and agree that the terms and conditions of each Unit Franchise Agreement executed pursuant to this Agreement shall remain in full force and effect notwithstanding the expiration and termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, Section 6 of the Development Agreement outlines the process for executing a Unit Franchise Agreement. Upon B Bops's approval of a proposed site, the company grants the Developer the right to own and operate a B Bops Restaurant at that location, assuming the Developer is compliant with the terms of the Development Agreement and all existing Unit Franchise Agreements.
Following site approval, B Bops will provide the Developer with a Unit Franchise Agreement, which must be the standard form B Bops uses at the time for granting franchises. The Developer is required to execute and return this agreement, along with the initial franchise fee (as detailed in Appendix III), within 20 days of receipt. Failure to comply within this timeframe renders B Bops's site approval null and void, and the Developer loses all rights to that site.
The terms and conditions of the Unit Franchise Agreement will govern the franchise relationship for each unit developed under the Development Agreement. However, if any terms in the Unit Franchise Agreement conflict with the Development Agreement, the provisions of the Development Agreement will take precedence. Furthermore, each Unit Franchise Agreement remains in effect even after the Development Agreement expires or is terminated.