What is the dependency between the B Bops Development Agreement and the Trade Area?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
nsed Marks"); and
WHEREAS, Developer desires to obtain certain rights to develop B-Bop's Restaurants at locations in the geographic area described in Appendix I attached hereto (such area to be hereinafter referred to as the "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.
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 specific geographic area, referred to as the "Trade Area." This right is subject to the terms and conditions outlined in the Development Agreement and compliance with the Development Schedule. The developer is obligated to develop, construct, and open B Bops restaurants within the Trade Area according to the agreed-upon schedule. B Bops agrees not to establish or license any third party to establish a B Bops restaurant in the Trade Area during the term of the Development Agreement.
The Development Agreement includes recitals that define key terms and establish the context for the agreement. The Trade Area is described in Appendix I of the agreement, while the Development Schedule, which outlines the timeline for developing B Bops restaurants, is detailed in Appendix II. The agreement emphasizes the developer's unique financial and management abilities as a basis for granting the multiple-unit franchise system.
The developer must submit proposed sites for B Bops units within the Trade Area to B Bops for approval. B Bops has the discretion to approve or reject the proposed site within thirty days of receiving the submission. The developer cannot enter into any binding agreements for the lease or purchase of a site before receiving written approval from B Bops. However, B Bops's approval of a site does not guarantee the success of the location, and the developer assumes all risks associated with establishing the unit at the approved site.
During the term of the Development Agreement, the developer is restricted from engaging in any business that is the same as or substantially similar to a B Bops restaurant, except for units owned and operated under a Unit Franchise Agreement with B Bops. This restriction extends for two years after the termination or expiration of the Development Agreement within the Trade Area or within a twenty-mile radius of any other B Bops restaurant. This ensures that the developer does not compete with B Bops during and for a period after the agreement.