What does 'negotiate' mean in the context of B Bops' dealings with third parties?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
on 7 hereof.
-
- Prior to informing Applicant of Company's decision of whether the Rights will be granted, Company agrees that it shall not negotiate with any third party regarding the potential purchase of a B-Bop's Restaurant in the Trade Area. For purposes of this Section 6, the term "negotiate" shall mean the execution of an Application Agreement with any third party, the acceptance of a deposit from any third party or the providing of any assistance or information identified in this Agreement to any third party.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the term 'negotiate' has a specific meaning when B Bops is dealing with third parties regarding the potential purchase of a B Bops Restaurant in a designated trade area. It is important to understand this definition because, prior to informing an applicant whether they will be granted rights to a specific trade area, B Bops agrees not to 'negotiate' with any other party.
Specifically, 'negotiate' means any of the following actions: executing an Application Agreement with a third party, accepting a deposit from a third party, or providing any assistance or information identified in the Application Agreement to a third party. This definition clarifies the scope of B Bops' commitment to refrain from engaging with other potential franchisees while an application is under consideration.
However, it's important to note that this restriction on B Bops negotiating with third parties only applies before they inform an applicant of their decision. After termination of the agreement by either party, B Bops is entitled to negotiate with other parties. This ensures B Bops can continue to develop its franchise system even if an initial agreement falls through.