What is the dependency between the B Bops Development Agreement and the Unit Franchise Agreement?
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, the Development Agreement grants a developer the right to establish multiple B Bops restaurants within a specific geographic area, contingent upon adhering to a development schedule. To operate each restaurant, the developer must also execute a Unit Franchise Agreement.
The Development Agreement outlines the terms for granting the rights to develop B Bops restaurants in a specific trade area, while the Unit Franchise Agreement details the terms for operating each individual B Bops restaurant. The FDD specifies that the Unit Franchise Agreement in effect at the time of each unit's development will be the standard form used by B Bops. The developer must sign the Unit Franchise Agreement within 20 days of receipt, including the initial franchise fee, or the site approval becomes void.
The terms of the Unit Franchise Agreement govern the franchise relationship for each unit, except where they conflict with the Development Agreement, in which case the Development Agreement prevails. Even if the Development Agreement expires or terminates, the Unit Franchise Agreements remain in effect unless terminated according to their own terms. This ensures that franchisees can continue operating their B Bops restaurants under the terms of their individual franchise agreements, even if the broader development agreement concludes.
In essence, the Development Agreement sets the stage for area development, while the Unit Franchise Agreement authorizes the operation of each specific B Bops restaurant. Both agreements are crucial for developers looking to expand the B Bops brand within their designated territory. The personal guarantee of obligations under the Multiple-Unit Development Agreement ensures that the partners or shareholders of the developer are bound by the terms and conditions of the agreement.