Can a B Bops franchisee terminate the Development Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development | Summary |
|---|---|---|
| Agreement | ||
| A. Term of development | Section 2 | To be negotiated between parties based on |
| Rights | length of development schedule | |
| B. Renewal or extension of the term1 | Section 2 | Any renewal to be on such terms and conditions as the Company and you may mutually agree upon expiration of the original term. |
| C. Requirements for you to | None | Not applicable. |
| renew or extend | ||
| D. Termination by you | None | Not applicable. |
| E. Termination by the Company | None | Not applicable. |
| without cause1 | ||
| F. Termination by the Company with "cause"1 | Section 11 | The Company can terminate if you default in performance of the Development Agreement or if certain other events occur. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchisee's ability to terminate the Development Agreement is 'Not applicable,' as indicated in Item 17. However, the document does outline the conditions under which the Application Agreement can be terminated.
Specifically, a B Bops franchisee may terminate the Application Agreement at any time without cause. Upon such termination, the franchisee is entitled to a refund of their deposit ($5,000), minus the lesser of $4,500 or the actual expenses incurred by B Bops. Conversely, B Bops also retains the right to terminate the Application Agreement without cause. In this scenario, the franchisee is entitled to a refund of their deposit ($2,500), minus the lesser of $2,000 or the actual expenses incurred by B Bops.
It's important to note that these termination conditions apply specifically to the Application Agreement, which precedes the Development Agreement. The Development Agreement itself can be terminated by B Bops if the franchisee defaults in the performance of the Development Agreement or if certain other events occur, as detailed in Section 11. The franchisee's obligations upon termination include returning all confidential information to B Bops and refraining from any further use of it. Additionally, the franchisee is restricted from involvement in any business substantially similar to a B Bops Restaurant during the term of the Development Agreement and for a period of two years after termination or expiration, within specified geographic areas.