When is B Bops entitled to negotiate with other parties regarding the Trade Area?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
on 7 hereof.
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- Prior to informing Applicant of Company's decision of whether the Rights will be granted, Company agrees that it shall not negotiate with any third party regarding the potential purchase of a B-Bop's Restaurant in the Trade Area. For purposes of this Section 6, the term "negotiate" shall mean the execution of an Application Agreement with any third party, the acceptance of a deposit from any third party or the providing of any assistance or information identified in this Agreement to any third party. Nothing in this Section 6 shall prohibit Company from providing an information package or Franchise Offering Circular to any third party interested in purchasing a B-Bop's Restaurant in the Trade Area with any third party for the purchase of a B-Bop's Restaurant in the Trade Area.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops is restricted from negotiating with other parties regarding the potential purchase of a B Bops Restaurant in the Trade Area before informing the applicant of their decision on whether to grant the rights to the applicant.
Negotiation, in this context, is defined as executing an Application Agreement with a third party, accepting a deposit from them, or providing any assistance or information outlined in the agreement to them. However, this does not prevent B Bops from providing an information package or Franchise Offering Circular to any third party interested in purchasing a B Bops Restaurant in the Trade Area.
Upon the termination of the agreement by either party, B Bops is then entitled to negotiate with other parties. This means that once the franchise agreement is terminated, B Bops is free to pursue other potential franchisees for the Trade Area.