What is the Developer's obligation regarding B Bops Restaurants in the Trade Area?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer hereby agrees to develop, construct and open for business B-Bop's 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.
Developer agrees to submit a written report to Company of each proposed site for a Unit in the Trade Area, containing such information or material as Company may reasonably request. Company shall review the submitted materials, conduct such other investigation of the proposed site it determines may be necessary to properly evaluate the same and, in its sole discretion, either approve or reject such site by written notice to Developer within thirty (30) days after receipt of such materials, but such approval is not to be unreasonably withheld. If the proposed site is approved, the Company will also advise you, within the same thirty (30) day period, whether or not you will be required to include indoor seating in the construction and operation of the B-Bop's Restaurant. Developer agrees that Developer will not enter into any binding agreement with respect to lease or purchase of a proposed site prior to receiving Company's written approval of such site. Developer acknowledges and agrees that approval of a proposed site by Company does not constitute a representation or warranty by Company that such site, with or without indoor seating, will prove to be a successful location for the Unit, and Developer assumes all risks associated with establishing the Unit at such location.
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.
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 within their designated trade area. The developer must develop, construct, and open B Bops Restaurants within the trade area according to the agreed-upon Development Schedule. They are also required to develop, own, operate, maintain, and promote each B Bops Restaurant in accordance with the terms and conditions of the standard franchise agreement used by B Bops at the time of each unit's development. This agreement will be executed by the developer as specified in Section 6 of the agreement.
Furthermore, the developer is obligated to submit a written report to B Bops for each proposed site within the trade area, including any information or material reasonably requested by B Bops. B Bops will then review the submitted materials and conduct its own investigation of the proposed site. Within thirty days of receiving the materials, B Bops will either approve or reject the site in writing, with such approval not to be unreasonably withheld. If the site is approved, B Bops will also advise the developer within the same period whether indoor seating will be required in the construction and operation of the B Bops Restaurant. The developer cannot enter into any binding agreement to lease or purchase a proposed site before receiving written approval from B Bops.
These obligations ensure that the developer adheres to the standards and schedules set by B Bops, while also allowing B Bops to maintain control over site selection and restaurant design within the trade area. The developer also agrees that during the term of this Agreement, they will not 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. This helps protect B Bops's market share and brand integrity. However, the approval of a site does not guarantee success, and the developer assumes all risks associated with establishing the unit at the chosen location.