What is the B Bops developer required to do upon termination or expiration of the Development Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
thin such period.
- C. Upon termination or expiration of this Agreement, the development rights granted hereunder shall become null and void and Developer shall immediately cease any further attempts to select or develop sites on which to construct Units. Developer shall have no right to establish or operate any Unit for which a Unit Franchise Agreement has not been executed by Company prior to termination or expiration hereof. Termination or expiration of this Agreement shall not affect the rights of Developer to operate any Unit in accordance with the terms of any Unit Franchise Agreement which Developer has entered into with Company, until and unless such Unit Franchise Agreement is terminated in accordance with its terms. Developer acknowledges that upon termination or expiration hereof, Company shall be entitled to: (i) retain the balance of the development fee not applied towards initial franchise fees prior to termination or expiration hereof; and (ii) establish, or license others to establish, B-Bop's Restaurants in the Trade Area, except to the extent limited by the terms of any Unit Franchise Agreement executed by Company and Developer.
12. COVENANT NOT TO COMPETE.
- A. Developer hereby agrees that during the term of this Agreement, Developer, its directors, officers, shareholders, partners, members, principals or agents will not, directly or indirectly, enter into or engage in any business the same as or substantially similar to a B-Bop's Restaurant, except for any Unit owned and operated by Developer pursuant to a Unit Franchise Agreement entered into between the parties hereto.
- B. Developer hereby agrees that for a period of two (2) years immediately following the termination or expiration of this Agreement, Developer, its directors, officers, shareholders, partners, members, principals or agents will not, directly or indirectly, enter into or engage in any business the same as or substantially similar to a B-Bop's Restaurant operating at any location within the Trade Area or within a twenty (20) mile radius of any other B-Bop's Restaurant then in operation or under construction, whether owned and operated by Company, any affiliate of Company or by a franchisee under license granted by Company, except that Developer shall be entitled to continue to own and operate any Unit pursuant to a Unit Franchise Agreement entered into between the parties hereto.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, upon termination or expiration of the Development Agreement, the developer faces several requirements. The development rights granted become null and void, and the developer must immediately stop attempting to select or develop sites for new B Bops units. They cannot establish or operate any unit if a Unit Franchise Agreement hasn't been executed by B Bops before the termination or expiration. However, termination of the Development Agreement does not affect the developer's rights to operate existing units under a Unit Franchise Agreement, unless that agreement is separately terminated.
B Bops is entitled to retain the balance of the development fee that hasn't been applied to initial franchise fees before the termination or expiration. B Bops also has the right to establish or license others to establish B Bops Restaurants in the Trade Area, unless limited by the terms of any existing Unit Franchise Agreement with the developer.
Additionally, for two years after the termination or expiration, the developer is restricted from engaging in any business that is the same as or substantially similar to a B Bops Restaurant within the Trade Area or within a 20-mile radius of any B Bops Restaurant in operation or under construction. This restriction applies to the developer, their directors, officers, shareholders, partners, members, principals, or agents. A business is considered substantially similar if it prepares and serves food items that are standard menu items at B Bops. The developer can continue to operate any unit they own under a Unit Franchise Agreement.