When does the B Bops Franchise Agreement become effective?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
temporary basis.
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- TERM. The term of this Agreement and of the nonexclusive right, license and franchise granted hereunder shall commence upon the effective date of this Agreement and shall continue until the fifteenth (15th) anniversary thereof, or until the termination of this Agreement in accordance with the provisions hereof, whichever shall first occur (hereinafter the "Term"). Franchisee agrees to operate the Franchise on a continual basis throughout the Term, subject to the terms and conditions of this Agreement. Any renewal of the Franchise shall be governed by Section 18 of this Agreement.
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- EXCLUSIVITY. Company shall not during the Term of this Agreement open or franchise another B-Bop's Restaurant or any other restaurant business serving similar items within a two (2) mile radius of the Franchise Premises. Company reserves the right to grant and sell franchises to others to operate, and to own and operate for its own account or with others, a B-Bop's Restaurant at any location other than as restricted in this Section 3.
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- COMMENCEMENT OF OPERATIONS. Franchisee agrees to open and commence operation of the Franchise as soon as practicable after the effective date of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the term of the Franchise Agreement begins on the agreement's effective date. The franchisee has eight months from this effective date to open and commence operations of their B Bops restaurant. This timeframe can be extended if the franchisee demonstrates due diligence and obtains written consent from B Bops. B Bops will not unreasonably withhold consent if the delay is due to circumstances beyond the franchisee's control.
This means that the franchisee needs to be aware of the specific date the agreement becomes effective, as this starts the clock for several key obligations. The franchisee must secure an approved site for the B Bops restaurant. They must also begin operations within the specified timeframe. Any delays could potentially lead to a breach of the agreement unless an extension is granted.
Prospective franchisees should clarify with B Bops what constitutes the 'effective date' of the agreement. They should also understand the process for requesting an extension and what documentation or proof of 'due diligence' may be required. This will help ensure they meet their obligations and avoid any potential issues with B Bops.