In the B Bops franchise agreement, does the Company agree to not unreasonably withhold consent or approval when its consent or approval is required?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
n this Section 3.
-
- COMMENCEMENT OF OPERATIONS. Franchisee agrees to open and commence operation of the Franchise as soon as practicable after the effective date of this Agreement. In no event shall such opening and commencement of operations be delayed beyond eight (8) months from the effective date of this Agreement, unless an extension of time is granted in writing by Company. Where Franchisee has exhibited due diligence in complying with this Section 4, Company may, in its sole discretion, consent to an extension of the eight (8) month time period specified herein. Company shall not unreasonably withhold its consent when the delay results from circumstances beyond the reasonable control of Franchisee.
-
- DEVELOPMENT OF FRANCHISE PREMISES. Franchisee agrees to secure, at its sole expense, a site for the Franchise Premises which shall be approved in writing by Company as being suitable for use as a B-Bop's Restaurant. Using the construction plans and specifications
provided by Company, Franchisee shall be responsible, at its sole cost, for selecting an architect to transform such specifications into site specific plans and specifications which shall comply with all local codes, regulations and ordinances applicable to construction of the Franchise Premises and operation of the Franchise. Prior to commencement of construction of any improvements, Franchisee shall obtain Company's written approval of the site specific plans and specifications for the Franchise Premises.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, the company agrees to not unreasonably withhold consent in specific situations. Specifically, regarding the commencement of operations, the agreement states that B Bops will not unreasonably withhold consent for an extension of the eight-month period to open the franchise if the delay results from circumstances beyond the franchisee's control.
Additionally, the B Bops franchise agreement states that the company's approval of a franchisee's manager shall not be unreasonably withheld, provided such manager has completed the training course to the satisfaction of the company. This indicates that while B Bops retains the right to approve the franchisee's choice of manager, this approval process must be reasonable and tied to the manager's successful completion of the required training.
These clauses provide some assurance to the franchisee that B Bops will act reasonably when its approval is required, particularly in situations that could significantly impact the franchisee's ability to start or manage their business effectively. However, these are specific instances, and the FDD does not contain a blanket statement that B Bops will not unreasonably withhold consent in all matters.