Does the B Bops development agreement allow the developer to terminate the agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development | Summary |
|---|---|---|
| Agreement | ||
| A. Term of development | Section 2 | To be negotiated between parties based on |
| Rights | length of development schedule | |
| B. Renewal or extension of the term1 | Section 2 | Any renewal to be on such terms and conditions as the Company and you may mutually agree upon expiration of the original term. |
| C. Requirements for you to | None | Not applicable. |
| renew or extend | ||
| D. Termination by you | None | Not applicable. |
| E. Termination by the Company | None | Not applicable. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the development agreement does not allow the developer to terminate the agreement. The table within Item 17 outlines the conditions for termination by the franchisee, and it states that this is 'Not applicable.'
However, the Application Agreement does allow for termination by the franchisee. The franchisee may terminate the Application Agreement at any time without cause, according to Sections 4 and 8. Upon termination, the franchisee will be entitled to the amount of the deposit ($5,000) minus the lesser of (i) $4,500 or (ii) the actual expenses incurred by B Bops, as provided in the Application Agreement.
It is important to note that the Application Agreement is separate from the Development Agreement. The Application Agreement precedes the Development Agreement. The Application Agreement allows B Bops to determine whether to grant development rights or franchise rights. If B Bops decides to grant these rights, the franchisee must execute and deliver the appropriate documentation and pay the initial franchise fee or development fee within 15 days after receipt of the documents. Otherwise, the Application Agreement becomes null and void.