What is the Developer's obligation regarding the standard form of franchise agreement for B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a Developer is obligated to develop, own, operate, maintain, and promote each B Bops Restaurant in accordance with the terms and conditions contained in the standard form of franchise agreement that B Bops uses to grant franchises at the time of each unit's development. This agreement is referred to as a "Unit Franchise Agreement." The Developer must execute this Unit Franchise Agreement as specified in Section 6 of the Multiple-Unit Development Agreement.
Upon B Bops's approval of a proposed site, the company will grant the Developer the right to own and operate a B Bops Restaurant at that site, assuming the Developer is compliant with the terms of the Development Agreement and all Unit Franchise Agreements between the parties. B Bops will then forward a Unit Franchise Agreement to the Developer for execution regarding the approved site. The Unit Franchise Agreement will be the standard form that B Bops uses at the time of the unit's development.
The Developer is required to execute the Unit Franchise Agreement per B Bops's instructions within 20 days of receipt and return it to B Bops, along with the initial franchise fee. Failure to comply within this 20-day period renders B Bops's site approval null and void, and the Developer loses all rights to that site. The terms and conditions of the Unit Franchise Agreement will govern the franchise relationship for each unit, except where they conflict with the Development Agreement, in which case the Development Agreement prevails. The terms of each Unit Franchise Agreement remain in effect even after the Development Agreement expires or terminates.
After B Bops approves a site, the Developer must promptly acquire the site (through purchase, lease, or sublease) and secure the rights to construct and operate a unit there. The Developer must then begin construction as soon as possible, following the terms of the Unit Franchise Agreement. However, the Development Schedule outlined in the Development Agreement takes precedence over any conflicting terms in the Unit Franchise Agreement regarding construction and opening timelines.