Can B Bops make modifications to the Licensed System that are commercially unreasonable?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the Licensed System must continue to evolve in order to exploit new and changing consumer demands and, accordingly, that modifications and additions to the Licensed System may be necessary from time to time during the Term of this Agreement in order to preserve and enhance the public image of a B-Bop's Restaurant.
Franchisee agrees that Company may from time to time modify, add to or otherwise revise the Licensed System, the Licensed Marks or the standards as set forth in the Operations Manual, provided that no such modification, addition or revision shall be commercially unreasonable under the circumstances or alter or conflict with the terms of this Agreement.
Franchisee agrees to promptly accept and implement at its expense any of such modifications, additions or other revisions to the Licensed System, the Licensed Marks or the standards as set forth in the Operations Manual within such period of time as Company shall specify.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops may modify, add to, or revise the Licensed System, Licensed Marks, or standards in the Operations Manual. However, these modifications, additions, or revisions cannot be commercially unreasonable under the circumstances or conflict with the terms of the Franchise Agreement.
This means that while B Bops retains the right to update its system to keep up with changing consumer demands and maintain its public image, there are limitations to protect the franchisee. B Bops cannot implement changes that would be considered commercially unreasonable, suggesting that changes should be justifiable and not overly burdensome or costly for the franchisee. Additionally, any modifications must not violate the existing agreement between B Bops and the franchisee.
The franchisee is obligated to promptly accept and implement these changes at their own expense within the timeframe specified by B Bops. This could involve updating equipment, changing operational procedures, or altering marketing strategies. While franchisees must adapt to these changes, the stipulation that changes cannot be commercially unreasonable provides a degree of protection against arbitrary or excessively costly mandates from B B Bops.
Prospective franchisees should carefully consider the potential costs and operational challenges associated with implementing changes to the Licensed System. It would be prudent to discuss with B Bops what types of changes have been implemented in the past, the typical costs associated with such changes, and the process for franchisees to raise concerns if they believe a proposed change is commercially unreasonable.