Does the B Bops franchise agreement specify any circumstances under which the Company's approval can be reasonably withheld?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
NT 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.
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- 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the franchise agreement outlines specific situations where the company's approval cannot be unreasonably withheld. Specifically, when a franchisee experiences delays in opening their franchise location due to circumstances beyond their control and has demonstrated due diligence, B Bops agrees not to unreasonably withhold consent for an extension of the initial eight-month period to commence operations.
Additionally, the franchise agreement states that B Bops' approval of a franchisee's manager cannot be unreasonably withheld, provided the manager has successfully completed the required training course to the company's satisfaction. This indicates that B Bops maintains the right to ensure that the franchisee's manager is adequately trained and qualified to uphold the brand's standards.
These stipulations provide some assurance to prospective B Bops franchisees that the company will act reasonably in certain key approval processes, particularly those related to unforeseen delays in opening and the qualifications of the franchisee's appointed manager. However, franchisees should carefully review the franchise agreement to fully understand the scope and limitations of these provisions and to identify any other circumstances where B Bops' approval may be required.