What is the required action of the B Bops franchisee regarding the operation of the franchise throughout the term?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- TERM. The term of this Agreement and of the nonexclusive right, license and franchise granted hereunder shall commence upon the effective date of this Agreement and shall continue until the fifteenth (15th) anniversary thereof, or until the termination of this Agreement in accordance with the provisions hereof, whichever shall first occur (hereinafter the "Term"). Franchisee agrees to operate the Franchise on a continual basis throughout the Term, subject to the terms and conditions of this Agreement. Any renewal of the Franchise shall be governed by Section 18 of this Agreement.
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CONTINUING OBLIGATIONS OF FRANCHISEE.
Franchisee agrees to comply with the following obligations during the Term of this Agreement:
A. Management and Operation. Franchisee agrees to devote Franchisee's fulltime and best efforts to the active management and operation of the Franchise, or to appoint a manager to devote such manager's full-time and best efforts to operation of the business. Franchisee shall have the right to appoint a full-time manager to operate the Franchise on a day-to-day basis, provided that: (i) Company shall have the right to approve the qualifications of such manager; and (ii) Franchisee shall remain active in the business by monitoring such manager's performance in operating the Franchise. Company's approval of Franchisee's manager shall not be unreasonably withheld, provided such manager has completed the training course (to the satisfaction of Company) required pursuant to Section 7(A) of this Agreement. The individual responsible for the daily management and supervision of the Franchise shall assume such responsibilities on a full-time basis and shall not engage in any other business or activity that requires significant time commitments or that may otherwise be detrimental to or interfere with the management obligations imposed hereunder. If Franchisee is a partnership, corporation or limited liability company, Franchisee shall not be involved in any business or activities apart from ownership and operation of the Franchise (and the ownership of any other B-Bop's Restaurant pursuant to a franchise agreement between Company and Franchisee).
Franchisee shall operate the Franchise only on the Franchise Premises and only in accordance with the business standards, procedures and policies set forth in the Operations Manual, as modified from time to time, or as specified in other manuals or written material provided by Company. Franchisee acknowledges that Franchisee shall be required to sell each of the items contained in the standard B-Bop's Restaurant menu as established from time to time by Company, and that each of such items will be prepared, packaged and sold in strict conformance with Company's standard operating procedures set forth in the Operations Manual.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchisee must operate the franchise on a continual basis throughout the term of the agreement, subject to its terms and conditions. The term of the agreement begins on the effective date and continues until the 15th anniversary or until the agreement is terminated.
B Bops franchisees are obligated to devote their full-time and best efforts to the active management and operation of the franchise. Alternatively, a franchisee can appoint a manager to fulfill this role, provided B Bops approves the manager's qualifications. Even with a manager in place, the franchisee must remain active in the business by monitoring the manager's performance. The individual responsible for daily management must commit to this role full-time and not engage in other conflicting business activities. If the franchisee is a business entity, its activities must be limited to the ownership and operation of the B Bops franchise.
Furthermore, the B Bops franchisee must operate the franchise only from the approved franchise premises and in accordance with the standards, procedures, and policies outlined in the Operations Manual. Franchisees are required to sell all items on the standard B Bops menu, preparing, packaging, and selling them in strict compliance with the company's standard operating procedures. This ensures uniformity and quality across all B Bops locations, maintaining the brand's reputation and customer expectations.