What is the prohibited action for B Bops and its affiliates if a franchisee complies with the development schedule?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the multiple-unit arrangement, the Company utilizes the Multiple-Unit Development Agreement attached hereto as Exhibit D (the "Development Agreement") to grant development rights. If the Company approves your application for development rights, you will sign a Development Agreement and be granted the right to establish a specified number of Franchises in a defined trade area in accordance with a development schedule negotiated between you and the Company. So long as you comply with the development schedule (and the Development Agreement otherwise remains in effect), the Company and its affiliates cannot develop the defined trade area through the establishment of Company-owned units or through the sale of Franchises to other persons. Each Franchise established in the trade area will be governed by a separate franchise agreement you must sign, with such franchise agreement to be in the form of the standard franchise agreement being utilized by the Company at the time to grant new Franchises. The multiple-unit arrangement will be used only in larger metropolitan areas that are capable of supporting a number of Franchises. In the event you are a corporation, limited liability company or partnership, your shareholders, members or partners will be required to personally guaranty your obligations under the Development Agreement and each franchise agreement executed with the Company.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, under a multiple-unit arrangement, B Bops grants development rights to a franchisee through a Development Agreement. This agreement allows the franchisee to establish a specified number of B Bops franchises within a defined trade area, following a development schedule negotiated with B Bops.
As long as the franchisee adheres to the development schedule and the Development Agreement remains in effect, B Bops and its affiliates are restricted from developing the defined trade area themselves. This restriction includes both establishing company-owned B Bops units and selling franchises to other individuals within that area.
This provision offers a significant benefit to the franchisee, as it provides a degree of territorial protection. By meeting the agreed-upon development milestones, the franchisee can prevent B Bops from directly competing with them or allowing other franchisees to encroach on their designated territory. This protection is particularly valuable in larger metropolitan areas where multiple B Bops franchises can be supported.