Does the B Bops Development Agreement grant exclusive rights for franchises?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Development Agreement, you will be granted the exclusive right to establish Franchises in a defined trade area at sites to be approved by the Company. The exact size and boundaries of the trade area will be negotiated between the parties prior to execution of the Development Agreement, with the agreed upon definition of such trade area to be attached as an appendix thereto. The Company contemplates that the trade area will be defined by reference to various streets and highways forming the boundaries of the area and may consist of a portion of a city or county or may include one or more counties or cities. In exchange for the grant of the exclusive development rights, you are required to establish a specified number of Franchises in accordance with a development schedule negotiated between the parties and set forth as an appendix to the Development Agreement. So long as you comply with the development schedule and the Development Agreement otherwise remains in effect, the Company and its affiliates are prohibited from establishing any company-owned B-Bop's Restaurant in the trade area or from granting any third party the right to establish a Franchise in such trade area. Upon termination of the Development Agreement, however, your exclusive development rights are rescinded and, except as noted below with respect to any exclusive territory granted for individual Franchises already established, the Company is thereafter entitled to develop the trade area itself or to grant such right to third parties. The development schedule will supersede the terms of any franchise agreement with respect to the allowable period of time for construction
and opening of any Franchise developed pursuant to the Development Agreement.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Development Agreement does grant exclusive rights to establish franchises within a defined trade area. For a multiple-unit arrangement, the exact size and boundaries of this trade area are negotiated between B Bops and the developer before the agreement is signed, and the agreed-upon definition is attached as an appendix. This area may include a portion of a city or county, or even multiple cities or counties. As long as the developer adheres to the development schedule and the Development Agreement remains in effect, B Bops and its affiliates are prohibited from establishing company-owned restaurants or granting franchises to third parties within that trade area.
However, these exclusive development rights are rescinded if the Development Agreement is terminated. After termination, B Bops is entitled to develop the trade area themselves or grant the rights to third parties, except for any exclusive territory granted for individual franchises already established. The development schedule takes precedence over any conflicting terms in the franchise agreement regarding the construction and opening timeline of franchises.
For a single-unit arrangement, a franchisee is granted an exclusive territory consisting of the area within a two-mile radius of the franchise premises. During the term of the Franchise Agreement, B Bops and its affiliates are prohibited from opening or franchising a B Bops restaurant or other business serving similar products at any location within the franchisee's exclusive territory. The continuation of the exclusive territory is not dependent upon achieving a particular sales volume, market penetration or other similar contingency, and B Bops is not entitled to modify the exclusive territory without the franchisee's consent.