What is the B Bops Franchisee's responsibility regarding the Licensed System?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
NCE OF FRANCHISE. Company hereby grants to Franchisee, and Franchisee hereby accepts from Company, a nonexclusive right, license and franchise to establish and operate a B-Bop's Restaurant (the "Franchise") at the following location only:
| Street and Number |
|---|
| City, State and Zip |
(the "Franchise Premises"), and to use only in connection therewith the Licensed System and Licensed Marks, together with such other confidential and valuable information and trade secrets as may now or hereafter exist and constitute a portion of the Licensed System, all upon the terms and conditions set forth in this Agreement. Franchisee agrees to establish, maintain, operate and promote the Franchise in compliance with the provisions of this Agreement and with Company's standards, policies and procedures as prescribed from time to time by Company in the confidential operations manual provided by Company (the "Operations Manual"). Franchisee may not directly or indirectly subfranchise, sublicense or in any other manner authorize any other person to own or operate a B-Bop's Restaurant or to utilize in any manner all or any portion of the Licensed System or the Licensed Marks. Franchisee acknowledges that the rights granted hereunder are limited to operation of a B-Bop's Restaurant on the Franchise Premises exclusively and that Franchisee shall have no right to operate a B-Bop's Restaurant at any other location, whether on a permanent or temporary basis.
-
- 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.
-
- 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.
-
- 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. Upon receipt of such approval, Franchisee shall enter into a contract with a responsible contractor providing for construction of improvements to the Franchise Premises in accordance with site specific plans and specifications, all at the expense of Franchisee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchisee has several responsibilities regarding the Licensed System. The franchisee must operate and promote their B Bops restaurant in compliance with the franchise agreement and the standards, policies, and procedures outlined in the confidential operations manual. The franchisee is granted a nonexclusive right to operate a B Bops Restaurant at a specific location and is restricted from operating a B Bops Restaurant at any other location.
Additionally, the franchisee must maintain the interior and exterior of the Franchise Premises in good condition, undertaking necessary repairs, redecoration, and restoration to meet B Bops's standards. They are also responsible for obtaining and maintaining all necessary permits and licenses for the lawful operation of the franchise and for complying with all applicable federal, state, and local laws. The franchisee is expected to promptly pay all accounts payable and other invoices incurred in the operation of the franchise.
B Bops may modify the Licensed System, Licensed Marks, or standards in the Operations Manual, and the franchisee is obligated to implement these changes at their own expense. The franchisee must also cooperate with B Bops's representatives during inspections to ensure compliance with the Operations Manual and the franchise agreement, and remedy any noncompliance issues within the specified timeframe. The franchisee is restricted from operating any other business on the Franchise Premises without prior written consent from B Bops and must adhere to the standard menu.
These stipulations ensure that each B Bops location maintains a consistent brand image and operational standard, protecting the overall reputation and customer goodwill associated with the B Bops brand. Franchisees should be aware of these obligations and prepared to invest in maintaining the standards set by B Bops.