If there is more than one Developer in the B Bops agreement, are they bound jointly or severally?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- PARTIES. The terms "Company" and "Developer" and any pronoun referring thereto, shall be deemed to include the parties hereto and their respective heirs, executors, administrators, successors and assigns, without regard to gender or number. If there is more than one Developer, they shall be bound jointly and severally. Any reference to the term "Developer" which is applicable to an individual or individuals shall mean the owner or owners of the equity or operating control of Developer if Developer is a corporation or partnership. Except to the extent otherwise expressly set forth herein, nothing in this Agreement is intended, or shall be construed, to confer any rights or remedies upon any person or entity not a party hereto.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if there is more than one developer, they are bound jointly and severally. This means that each developer is individually responsible for the entire obligation, as well as collectively responsible with the other developers.
In practical terms, this clause protects B Bops. If one developer fails to meet their obligations, B Bops can seek full compensation or compliance from any or all of the developers. The developers, in turn, would need to sort out the responsibility among themselves.
This type of clause is common in franchise agreements when multiple parties are involved, as it provides the franchisor with a straightforward path to ensure all obligations are met. Prospective B Bops developers should carefully consider this provision and understand the full extent of their potential liability if entering into a development agreement with multiple parties.