What is the geographic scope of the exclusive development rights granted for B Bops Restaurants?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
nsed Marks"); and
WHEREAS, Developer desires to obtain certain rights to develop B-Bop's Restaurants at locations in the geographic area described in Appendix I attached hereto (such area to be hereinafter referred to as the "Trade Area"); and
WHEREAS, Company and Developer have mutually agreed upon the time schedule set forth in Appendix II attached hereto for the development of B-Bop's Restaurants in the Trade Area (such schedule to be hereinafter referred to as the "Development Schedule"); and
WHEREAS, the terms and conditions contained in this Agreement have been negotiated in reliance upon the unique financial and management ability of Developer to establish a multiple-unit franchise system.
NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
- GRANT AND ACCEPTANCE OF DEVELOPMENT RIGHTS. Company hereby grants to Developer, subject to the terms and conditions of this Agreement, the exclusive right to develop B-Bop's Restaurants in the Trade Area in compliance with the Development Schedule. Developer hereby agrees to develop, construct and open for business B-Bop's
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Restaurants within the Trade Area in accordance with the Development Schedule and with the terms and conditions of this Agreement. Developer further agrees to develop, own, operate, maintain and promote each B-Bop's Restaurant (hereinafter referred to as a "Unit") in accordance with the terms and conditions contained in the standard form of franchise agreement being utilized by Company to grant B-Bop's Restaurant franchises at the time of development of each such Unit (hereinafter referred to as a "Unit Franchise Agreement"), to be executed by Developer as specified in Section 6 hereof. Company agrees that it shall not establish, or license any third party to establish, a B-Bop's Restaurant in the Trade Area prior to the termination or expiration of this Agreement.
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- TERM. The term of this Agreement and of the development rights granted hereunder shall commence upon the effective date of this Agreement and shall continue until the date specified in Appendix II attached hereto, unless terminated earlier in accordance with Section 11 hereof. Termination or expiration of this Agreement shall constitute a termination or expiration of the development rights granted hereunder. This Agreement and the development rights may be renewed upon such terms and conditions as Company and Developer may mutually agree upon expiration of the term hereof.
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- DEVELOPMENT FEE.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, the geographic scope of the exclusive development rights granted to a developer is defined by a specific "Trade Area." This Trade Area is detailed in Appendix I of the Multiple-Unit Development Agreement. B Bops grants the developer the exclusive right to develop B Bops Restaurants within this Trade Area, contingent upon compliance with a Development Schedule also outlined in the agreement. The agreement specifies that B Bops will not establish or license any third party to establish a B Bops Restaurant within the Trade Area before the termination or expiration of the agreement.
This exclusive development right is subject to several conditions. The developer must adhere to the Development Schedule and the terms of the agreement. The developer is also required to execute a Unit Franchise Agreement for each restaurant they develop, which will govern the franchise relationship for that specific unit. However, in case of conflicts between the Development Agreement and the Unit Franchise Agreement, the Development Agreement will take precedence.
Furthermore, the agreement includes a covenant not to compete, restricting the developer from engaging in any similar business within the Trade Area during the agreement's term and for two years after termination or expiration. This restriction extends to a 20-mile radius of any B Bops Restaurant in operation or under construction. The rights and duties within the agreement are personal to the developer, and the development rights cannot be transferred without B Bops's prior written approval, emphasizing the importance B Bops places on the developer's character, skills, and financial capacity.