What happens to the B Bops development rights if the agreement expires?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Upon termination or expiration of this Agreement, the development rights granted hereunder shall become null and void and Developer shall immediately cease any further attempts to select or develop sites on which to construct Units. Developer shall have no right to establish or operate any Unit for which a Unit Franchise Agreement has not been executed by Company prior to termination or expiration hereof. Termination or expiration of this Agreement shall not affect the rights of Developer to operate any Unit in accordance with the terms of any Unit Franchise Agreement which Developer has entered into with Company, until and unless such Unit Franchise Agreement is terminated in accordance with its terms. Developer acknowledges that upon termination or expiration hereof, Company shall be entitled to: (i) retain the balance of the development fee not applied towards initial franchise fees prior to termination or expiration hereof; and (ii) establish, or license others to establish, B-Bop's Restaurants in the Trade Area, except to the extent limited by the terms of any Unit Franchise Agreement executed by Company and Developer.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, upon the expiration of the Multiple-Unit Development Agreement, the developer's rights to develop new B Bops restaurants cease. Specifically, the development rights granted become null and void, and the developer must immediately stop attempting to select or develop sites for new units. The developer cannot establish or operate any B Bops unit if a Unit Franchise Agreement has not been executed by B Bops prior to the expiration of the development agreement.
However, the expiration of the development agreement does not affect the developer's rights to operate existing B Bops units under already-executed Unit Franchise Agreements, unless those individual agreements are terminated according to their own terms. B Bops is entitled to retain any remaining balance of the development fee that has not been applied towards initial franchise fees before the agreement's expiration.
Furthermore, after the agreement expires, B Bops has the right to establish or license others to establish B Bops restaurants within the trade area, except as limited by the terms of any Unit Franchise Agreement already in place with the developer. This means that while the developer loses the exclusive right to develop new locations, their existing franchised restaurants remain protected under their individual franchise agreements, and B Bops can expand in the area through other franchisees or company-owned stores.