What is the Developer's obligation to operate B Bops Restaurants?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
lopment 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. In consideration of the development rights granted by Company hereunder, Developer agrees to pay Company by certified or cashier's check the development fee specified in Appendix III attached hereto upon execution of this Agreement. Such fee shall be deemed fully earned upon execution of this Agreement and shall not be refundable to Developer under any circumstances. Any deposit paid by Developer prior to execution of this Agreement shall be applied toward satisfaction of the development fee. A portion of such development fee, to be specified in Appendix III attached hereto, shall be applied by Company toward the initial franchise fee payable under the Unit Franchise Agreement executed for each Unit developed by Developer pursuant to this Agreement. Company and Developer acknowledge and agree that the payment terms imposed by this Agreement with respect to the development fee and the initial franchise fee payable for Units developed pursuant hereto are in lieu of and supersede the terms of any Unit Franchise Agreement relating to the amount and time of payment of the initial franchise fee.
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- TIMELY PERFORMANCE. The development rights provided hereunder have been granted by Company in reliance upon Developer's representations and assurances, among others, that the conditions set forth in this Agreement will be satisfied on a timely basis. Where Developer has exhibited due diligence in complying with the terms and conditions of this Agreement and the Development Schedule, Company may, in its sole discretion, grant an extension of the time requirements imposed by the Development Schedule. No such extension shall be valid unless in writing and executed by an officer of Company. Company and Developer acknowledge and agree that the Development Schedule imposed herein is in lieu of and supersedes the terms of any Unit Franchise Agreement with respect to the allowable time period for construction and opening of any Unit established pursuant to this Agreement.
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- SITE SELECTION.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a Developer has specific obligations regarding the operation of B Bops Restaurants within a designated trade area. The Developer must develop, own, operate, maintain, and promote each B Bops Restaurant, referred to as a "Unit," according to the terms and conditions outlined in the standard franchise agreement used by B Bops at the time of each Unit's development. This agreement, known as a "Unit Franchise Agreement," is to be executed by the Developer.
The Developer is required to develop B Bops Restaurants in the Trade Area in compliance with the Development Schedule. Upon B Bops's approval of a proposed site, the Developer is granted the right to own and operate a B Bops Restaurant at that location, provided they comply with the terms of the Development Agreement and all Unit Franchise Agreements. The Developer must then execute the Unit Franchise Agreement within twenty days of receipt and return it with the initial franchise fee. Failure to do so renders the site approval null and void.
Once a site is approved, the Developer must promptly acquire the site and begin construction of the Unit according to the Unit Franchise Agreement. However, the Development Schedule specified in the Development Agreement takes precedence over the Unit Franchise Agreement regarding construction and opening timelines. This means the Developer must adhere to the timelines set forth in the Development Schedule, potentially overriding conflicting terms in the Unit Franchise Agreement.
These obligations ensure that the Developer actively manages and promotes the B Bops brand within their designated area, adhering to B Bops's standards and timelines. The interplay between the Development Agreement and the Unit Franchise Agreement is critical, as the former governs the overall development schedule while the latter dictates the specific operational requirements of each restaurant. A prospective franchisee should carefully review both agreements to understand their obligations and how they interact.