If a B Bops franchisee's lease lapses due to default, can they relocate?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise is granted for a specific location that must be approved by the Company. Any relocation of the Franchise requires the prior written approval of the Company and is permitted only when use of the original location is no longer possible due to damage or destruction, taking by eminent domain or lapse of the lease (in the absence of a default thereunder).
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a single-unit franchisee's ability to relocate is contingent upon the circumstances surrounding the lease's lapse. Specifically, relocation requires B Bops's prior written approval and is permitted only when the original location is no longer usable due to damage, destruction, eminent domain, or lapse of the lease, provided the lapse isn't due to the franchisee's default.
This condition is significant for prospective franchisees because it means that if a B Bops franchisee fails to meet their lease obligations, leading to a default and subsequent lapse, they may not be allowed to relocate the franchise. This could result in the franchisee losing their business location and potentially facing significant financial losses if relocation is not approved. The franchisee needs to maintain good standing with their lease to be able to relocate if the lease lapses.
In the franchise industry, franchisors often retain control over location decisions to protect brand consistency and market strategy. B Bops's policy aligns with this practice by requiring approval for relocation. However, the added stipulation regarding lease defaults places an additional responsibility on the franchisee to manage their lease obligations diligently. Prospective franchisees should carefully consider this condition and ensure they have a solid plan for managing their lease and maintaining compliance to avoid potential relocation restrictions.
Therefore, a prospective B Bops franchisee should seek clarification from B Bops regarding what constitutes an acceptable reason for relocation and what specific steps can be taken to ensure compliance with the relocation policy. Understanding these details can help mitigate the risk of being denied relocation in the event of a lease lapse.