What is the name of the company that grants development rights for B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned persons hereby represent to B-Bop's Franchising Corp. ("Company") that they are partners or shareholders of the developer ("Developer") entering into the within and foregoing Multiple-Unit Development Agreement (the "Agreement"), of which this Personal Guaranty shall be deemed an integral part.
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- In consideration of the development rights granted to Developer hereunder and in order to induce Company to grant such development rights to Developer, each of the undersigned hereby agrees, jointly, individually and severally, for themselves, their heirs, legal representatives and assigns as follows: (a) that they, and each of them, shall be personally bound by and agree to perform all of the terms, provisions and conditions of this Agreement; (b) that they, and each of them, do hereby personally and unconditionally guarantee full and prompt payment to Company of any indebtedness of Developer arising under or by virtue of this Agreement; (c) that they, and each of them, will not sell, assign or otherwise permit or cause a transfer of the development rights or any partnership or stock interest in Developer without complying with the requirements of Section 13 of the Agreement; (d) that they, and each of them, shall be personally bound by the nondisclosure and noncompete covenants of this Agreement; and (e) that they, and each of them, shall be personally liable for the breach of any provision of this Agreement, including both monetary obligations and any obligation to take or refrain from taking specific actions or activities.
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- Each of the undersigned further agree as follows: (a) that this Guaranty shall be continuing and irrevocable; (b) that they, and each of them, shall render any payment or performance required under this Agreement upon demand if Developer fails or refuses promptly to do so; (c) such liability shall be primary and shall not be contingent upon Company pursuing or exhausting any remedies against Developer; (d) such liability shall not be waived, diminished or otherwise affected by any extension of time, credit or other indulgence which Company may from time to time grant to Developer; and (e) that they, and each of them, hereby waive notice of acceptance, demand, protest, nonperformance and of any other notices.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B-Bop's Franchising Corp. is the company that grants development rights. This is highlighted in the context of a personal guaranty required from partners or shareholders of the developer. These individuals must agree to be bound by the Multiple-Unit Development Agreement. They also guarantee the developer's obligations to B Bops Franchising Corp.
The agreement specifies that in exchange for the development rights, the involved parties must personally guarantee the developer's financial and operational responsibilities. This includes ensuring the developer adheres to the agreement's terms, promptly pays any debts, and complies with non-disclosure and non-compete clauses. This guarantee is continuous and irrevocable, meaning the individuals remain responsible even if B Bops provides the developer with extensions or waivers.
This arrangement protects B Bops by ensuring that the developer and its key stakeholders are fully committed to fulfilling the development agreement. It also means that prospective developers need to be aware that B Bops requires a significant personal commitment from the owners or partners of the development entity, not just the entity itself. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or non-compliance.