What happens if a B Bops developer makes a willful or fraudulent misrepresentation to the company?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
A. The occurrence of any of the following events shall constitute a default under this Agreement:
- (6) Developer makes, or has made, any willful or fraudulent misrepresentation to Company in connection with obtaining this Agreement, any Unit Franchise Agreement or any site approval hereunder;
B. Upon occurrence of any of the events set forth above, Company may, without prejudice to any other rights or remedies contained in this Agreement or provided by law or equity, terminate this Agreement by notice to Developer. Such termination shall be effective immediately upon receipt of written notice by Developer if the default is an event specified in paragraphs (1) through (6) above, to which no right of cure exists.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, a developer's willful or fraudulent misrepresentation to the company is considered a default under the Multiple-Unit Development Agreement. Specifically, if a developer makes a willful or fraudulent misrepresentation to B Bops in connection with obtaining the Development Agreement, any Unit Franchise Agreement, or any site approval, it constitutes an event of default. This means B Bops views honesty and accuracy in all dealings as critical.
Upon the occurrence of such a default, B Bops has the right to terminate the Development Agreement. The termination is effective immediately upon the developer's receipt of written notice from B Bops, and there is no opportunity for the developer to cure this type of default. This immediate termination underscores the seriousness with which B Bops treats fraudulent or willful misrepresentations.
This provision protects B Bops from developers who might provide false information to gain an advantage or approval. For a prospective B Bops developer, this highlights the importance of ensuring all information provided to the company is accurate and truthful. Any misrepresentation, whether intentional or not, could lead to the immediate termination of the Development Agreement and the loss of development rights.