Does the B Bops Development Agreement supersede the payment terms of the Unit Franchise Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the Development Agreement does indeed supersede the payment terms outlined in the Unit Franchise Agreement regarding the development fee and initial franchise fee. Specifically, the FDD states that the payment terms imposed by the Development Agreement take precedence over any conflicting terms in the Unit Franchise Agreement related to the amount and timing of the initial franchise fee payment. This means that as a developer, your payment obligations for these fees will be governed by the Development Agreement rather than the standard Unit Franchise Agreement.
Furthermore, the Development Schedule within the Development Agreement also supersedes any conflicting terms in the Unit Franchise Agreement concerning the allowable time period for construction and opening of a unit. This ensures that the Development Agreement maintains control over the timeline for establishing new B Bops locations under the development plan.
This aspect is crucial for prospective developers to understand, as it clarifies that the Development Agreement is the primary document dictating the financial and operational obligations during the development phase. Franchisees should carefully review both agreements to fully understand their respective roles and obligations, paying close attention to how the Development Agreement modifies or replaces specific terms of the Unit Franchise Agreement.