What happens to my right to develop additional franchises with B Bops upon termination of the Development Agreement?
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, upon termination or non-renewal of the Development Agreement, your right to develop additional franchises immediately terminates. Additionally, you will forfeit any remaining development fees that haven't been applied toward initial franchise fees. You will also lose the exclusive right to develop the defined trade area.
This means that if the Development Agreement ends, you can no longer build out any new B Bops locations in your designated territory, and any money set aside for future franchise fees that hasn't been used is lost. This could significantly impact your investment and future business plans with B Bops.
It is important to understand the conditions under which the Development Agreement can be terminated, both by you and by B Bops, as outlined in Section 11 of the Development Agreement. Carefully consider the implications of these termination clauses and how they could affect your development rights and financial commitments.