What happens to the B Bops franchise agreement upon expiration of the term without renewal?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of this Agreement, or upon expiration of the Term of this Agreement without renewal, Franchisee agrees as follows:
- A.
Franchisee shall no longer be entitled to operate a B-Bop's Restaurant on the Franchise Premises or at any other location, nor in any other manner at any location whatsoever utilize all or any portion of the Licensed System (including, but not limited to, the proprietary recipes) or any of the Licensed Marks, provided that termination or expiration of this Agreement shall not affect the right of Franchisee to operate any other B-Bop's Restaurant in accordance with the terms of a franchise agreement between the parties;
- B.
Franchisee shall cease to hold itself out to the public as being a B-Bop's Restaurant and shall avoid any other conduct which would suggest or indicate any relationship between Company and Franchisee, except to the extent permitted by paragraph A above;
- C.
Franchisee shall pay Company or its affiliates on demand all fees and
amounts then owing to Company or its affiliates under the terms of this Agreement and any other amounts owing to Company or its affiliates under any other agreement relating to the Franchise;
- D.
Franchisee shall immediately discontinue all use and display of the Licensed Marks and shall remove from the Franchise Premises any and all signs, emblems, fixtures, furniture, supplies, promotional materials, stationery, printed forms or other materials which display any of the Licensed Marks or feature any of the distinguishing characteristics of the Licensed System;
- E.
Franchisee shall, at its sole expense, immediately make such modifications to the exterior and interior of the Franchise Premises as Company shall reasonably request to effectively distinguish the Franchise Premises from its former appearance and from the appearance of any other B-Bop's Restaurant, including, without limitation, discontinuing use of the unique blue color scheme which is a distinguishing characteristic of the Licensed System.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if the franchise agreement expires without renewal, the franchisee faces several obligations. The franchisee is no longer allowed to operate a B Bops Restaurant at the franchise premises or any other location, and they cannot use any part of the Licensed System, including proprietary recipes or Licensed Marks. However, this does not affect the franchisee's right to operate other B Bops Restaurants under separate franchise agreements.
The franchisee must stop presenting themselves to the public as a B Bops Restaurant and avoid any conduct suggesting a relationship with B Bops, except as allowed for other franchise agreements. They are required to pay all outstanding fees and amounts owed to B Bops or its affiliates under the franchise agreement or any other related agreement.
Furthermore, the franchisee must immediately stop using and displaying the Licensed Marks and remove all signs, emblems, fixtures, furniture, supplies, promotional materials, and stationery that display the Licensed Marks or distinguishing characteristics of the Licensed System from the franchise premises. The franchisee is also responsible for making modifications to the exterior and interior of the franchise premises, at their own expense, to differentiate it from its former appearance and from other B Bops Restaurants, including discontinuing the use of the unique blue color scheme associated with the brand.