Where in the FDD is the license agreement between the Company and B Bops discussed?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Material Agreements. There are no agreements currently in effect which significantly limit the rights of the Company to use or license the Project Manual or the Operations Manual in any manner material to the Franchise. Effective as of March 17, 1995, B-Bop's assigned
ownership of the Licensed System and the Operations Manual and the Project Manual to the Company to enable the Company to franchise the B-Bop's Restaurant concept. A separate assignment from B-Bop's to the Company of the copyrights in the Operations Manual and the Project Manual was executed on October 3, 1995. As partial consideration for the assignment, the Company entered into a license agreement with B-Bop's granting a license to B-Bop's to use the Licensed System, the Licensed Marks, the Project Manual and the Operations Manual subject to certain restrictions and limitations. The license agreement is discussed in Item 13 under the paragraph heading "Material Agreements".
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 37–39)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the license agreement between the Company and B Bops is discussed in Item 13 under the paragraph heading "Material Agreements." This agreement grants B Bops a license to use the Licensed System, the Licensed Marks, the Project Manual, and the Operations Manual, subject to certain restrictions and limitations. This license was part of the consideration for B-Bop's assignment of the Licensed System and the Operations Manual and the Project Manual to the Company, which enabled the Company to franchise the B Bops Restaurant concept. The initial assignment occurred on March 17, 1995, with a subsequent assignment of copyrights on October 3, 1995.
For a prospective franchisee, this information highlights the legal relationship between B Bops (the original entity) and the Company (the franchisor). It's important to understand that the franchisor's right to offer franchises is based on these agreements. The fact that B Bops, the original entity, retains a license to use the system could have implications for the franchisee, although the FDD does not elaborate on what those implications might be.
Prospective franchisees should carefully review Item 13 of the FDD to understand the specific terms and conditions of the license agreement between the Company and B Bops. Understanding the restrictions and limitations placed on B Bops's use of the Licensed System, Licensed Marks, Project Manual, and Operations Manual is crucial. It would also be prudent to inquire about any potential conflicts or issues that could arise from this licensing arrangement and how they might affect the franchisee's operations.