Can B Bops request financial statements from the Developer at any time?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties acknowledge that the financial position of Developer is crucial to the timely performance of Developer's obligations hereunder and that Company has a legitimate interest in being informed from time to time regarding Developer's financial plans and status.
Accordingly, Company shall be entitled from time to time to request that Developer: (a) submit its financial statements to Company for review; and (b) disclose to Company its proposals for financing development of the Units.
The foregoing disclosure obligation is imposed solely for purposes of informing Company of Developer's proposals and progress in financing development of the Units, and shall not be construed as creating any joint venture, partnership, agency or other relationship between the parties with respect to Developer's financing activities.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops retains the right to request financial information from the Developer. B Bops is entitled to request that the Developer submit its financial statements for review and disclose proposals for financing the development of Units.
This provision allows B Bops to monitor the Developer's financial health and plans, ensuring they can meet their obligations for developing B Bops restaurants. However, the agreement explicitly states that this disclosure obligation is solely for informing B Bops of the Developer's proposals and progress in financing development and does not create any joint venture, partnership, agency, or other relationship between the parties regarding the Developer's financing activities.
For a prospective B Bops franchisee acting as a Developer, this means they must be prepared to regularly share their financial statements and development financing plans with B Bops. While this provides B Bops with oversight, the agreement clarifies that B Bops is not liable or responsible for the Developer's financing activities, maintaining the Developer's autonomy in financial matters.