Does the B Bops renewal agreement include the same terms as the initial franchise agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
WAL OF FRANCHISE. The Franchise granted hereunder may be renewed at the option of Franchisee upon the expiration of the Term of this Agreement for one (1) additional ten (10) year term upon the same terms and conditions as for initial franchises being offered by Company at the time of such expiration, provided that:
- A. Franchisee gives Company written notice of its election to renew not less than six (6) months, nor more than twelve (12) months, prior to the expiration of the Term;
- B. Franchisee, when notice is given and at the time of renewal, is not in breach of any material provision of this Agreement, or of any other agreement between Franchisee and Company or any affiliate thereof, and has substantially complied with the material terms and conditions of this Agreement and all such other agreements during the Term hereof;
- C. All monetary obligations owed to Company or any affiliate thereof have been satisfied prior to renewal;
- D. Franchisee executes Company's standard form of franchise agreement being utilized by Company on the date of renewal to grant new B-Bop's Restaurant franchises;
- E. Franchisee pays to Company a nonrefundable renewal fee of Five Thousand Dollars ($5,000) payable in full upon execution of the then current franchise agreement;
- F. Franchisee performs such remodeling, repairs and/or redecoration as Company may reasonably require to cause the Franchise Premises and the equipment, fixtures, furniture, signs and other improvements to conform with the specifications being used for new B-Bop's Restaurants being franchised on th
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchise agreement can be renewed for one additional term of ten years if the franchisee meets certain conditions. However, the renewal will not necessarily be on the same terms as the original agreement.
To renew the franchise, the franchisee must provide written notice to B Bops between six and twelve months before the expiration of the current term. The franchisee must also be in good standing, meaning they are not in breach of any agreements with B Bops and have substantially complied with the terms of the franchise agreement. All outstanding monetary obligations to B Bops must be settled before the renewal.
Most importantly, the renewal requires the franchisee to execute B Bops's standard franchise agreement that is being used for new franchises at the time of renewal. The franchisee must also pay a nonrefundable renewal fee of $5,000 and complete any remodeling or repairs necessary to bring the restaurant up to the standards of new B Bops restaurants. This means that the terms of the renewal agreement, including fees, standards, and other requirements, could be different from the initial franchise agreement.