What happens to my remaining development fee with B Bops if my Development Agreement is terminated?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| G. "Cause" defined-curable defaults1 | Section 11 | You will have thirty days after receipt of written notice to cure any default in the performance of any covenant or obligation under the Development Agreement (apart from any obligation as to which no right of cure exists - see below). |
|---|---|---|
| H. "Cause" defined-non-curable defaults1 | Section 11 | Use of the Licensed System or the Licensed Marks at any location except as authorized by a franchise agreement with the Company; insolvency proceedings (including an assignment for the benefit of creditors, appointment of a receiver or similar officer or the commencement of bankruptcy proceedings) involving you or any of your owners who hold a controlling interest or who are responsible for management; conviction or plea of guilty or no contest by you or any of your owners to any felony or any crime relating to operation of any Franchise; any purported transfer of the Development Agreement, the development rights or any ownership interest which fails to comply with Section 13 of the Development Agreement; termination of any franchise agreement with the Company; and any willful or fraudulent misrepresentation to the Company in connection with the development rights. |
| I. Your obligations on termination/non-renewal | Section 11 | Your right to develop additional franchises immediately terminates forfeiture of remaining development fee not previously applied toward initial franchise fees; and loss of exclusive right to develop defined trade area. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if the Development Agreement is terminated, your right to develop additional franchises immediately terminates. You will also forfeit any remaining development fees that have not yet been applied toward initial franchise fees. Additionally, you will lose any exclusive right you had to develop a defined trade area.
This means that if you have paid a development fee to secure the rights to open multiple B Bops locations within a specific area, but the agreement is terminated before you open all of those locations, you will not receive a refund for the portion of the fee associated with the unbuilt locations. This is a significant risk for B Bops franchisees who enter into development agreements, as unforeseen circumstances could lead to termination and loss of investment.
It is important for prospective B Bops franchisees to carefully consider the terms of the Development Agreement and the potential consequences of termination. Understanding the conditions under which B Bops can terminate the agreement, as well as your own obligations, is crucial before signing. You should also evaluate your ability to meet the development schedule and financial requirements to minimize the risk of termination and the associated loss of development fees.