What is the Developer's responsibility to develop B Bops Restaurants within the Trade Area?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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WHEREAS, Developer desires to obtain certain rights to develop B-Bop's Restaurants at locations in the geographic area described in Appendix I attached hereto (such area to be hereinafter referred to as the "Trade Area"); and
WHEREAS, Company and Developer have mutually agreed upon the time schedule set forth in Appendix II attached hereto for the development of B-Bop's Restaurants in the Trade Area (such schedule to be hereinafter referred to as the "Development Schedule"); and
WHEREAS, the terms and conditions contained in this Agreement have been negotiated in reliance upon the unique financial and management ability of Developer to establish a multiple-unit franchise system.
NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
- GRANT AND ACCEPTANCE OF DEVELOPMENT RIGHTS. Company hereby grants to Developer, subject to the terms and conditions of this Agreement, the exclusive right to develop B-Bop's Restaurants in the Trade Area in compliance with the Development 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. Developer acknowledges that Developer shall be responsible to select and secure a site acceptable to Company for the location of each Unit to be developed
pursuant to 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.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, a Developer is granted the exclusive right to develop B Bops Restaurants within a specific geographic area, known as the "Trade Area," as defined in Appendix I of the agreement. This development must comply with a mutually agreed-upon timeline, referred to as the "Development Schedule," which is detailed in Appendix II. The Developer is responsible for developing, constructing, and opening B Bops Restaurants within the Trade Area according to this schedule and the terms of the agreement. The Developer must also develop, own, operate, maintain, and promote each B Bops Restaurant (referred to as a "Unit") in accordance with the standard franchise agreement used by B Bops at the time of each Unit's development.
As part of the development process, the Developer must submit a written report to B Bops for each proposed site within the Trade Area. This report should include information and materials reasonably requested by B Bops. B Bops will then review the submitted materials and conduct its own investigation of the proposed site. Within 30 days of receiving the materials, B Bops will notify the Developer in writing whether the site is approved or rejected; however, approval is not to be unreasonably withheld. If the site is approved, B Bops will also advise the Developer within the same 30-day period whether indoor seating will be required in the construction and operation of the B Bops Restaurant. The Developer is prohibited from entering into any binding agreement to lease or purchase a proposed site before receiving written approval from B Bops.
It is important to note that B Bops' approval of a proposed site does not guarantee the success of the location. The Developer assumes all risks associated with establishing the Unit at the approved location. Furthermore, the rights and duties created by the agreement are personal to the Developer, and the development rights cannot be transferred without prior written approval from B Bops. This reflects B Bops' reliance on the Developer's character, skills, business ability, financial capacity, and attitude.
If the Developer fails to meet the development schedule or other obligations, B Bops has the right to terminate the agreement, which would nullify the development rights. Upon termination or expiration of the agreement, the Developer must cease any further attempts to select or develop sites, and B Bops is entitled to retain any unapplied development fees and to establish or license others to establish B Bops Restaurants in the Trade Area. However, the Developer's rights to operate existing Units under separate Unit Franchise Agreements remain in effect unless those agreements are terminated according to their own terms.