What is required for any modification or amendment to the B Bops Development Agreement to be valid?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| M. Conditions for the Company approval of transfer | Section 13 | Proposed transferee must satisfy the Company's current standards for new developers; assumption of Development Agreement; execution of general release (to the extent permitted by Minnesota law) and nondisclosure and noncompetition agreement; payment of $3,000 transfer fee; compliance with transfer provisions of Franchise Agreement if any Franchises simultaneously being transferred; and compliance with right of first refusal granted to the Company. |
|---|---|---|
| N. The Company's right of first refusal to acquire your development rights | Section 13(D) | The Company has the right to purchase the development rights or any ownership interest in the entity owning the development rights upon the same terms and conditions as contained in any bona fide offer received from a third party. |
| O. The Company's option to | None | Not applicable. |
| purchase your development | ||
| rights | ||
| P. Your death or disability | Section 13(B) | The development rights, or any controlling interest in any entity owning the development rights, must be transferred to an approved transferee, with the Company to be notified of the proposed transferee within six (6) months of death or disability. |
| Q. Non-competition covenants | Section 12 | No involvement in a business substantially |
| during the term of the | similar to a B-Bop's Restaurant at any | |
| Development Agreement | location. | |
| R. Non-competition covenants after the development rights are terminated or expire | Section 12 | No involvement in a business substantially similar to a B-Bop's Restaurant for two (2) years after termination or expiration within: (i) the trade area specified in the Development Agreement; or (ii) 20 miles of any other B-Bop's Restaurant then in operation or under development, except that you will be entitled to continue to operate any B-Bop's Restaurant pursuant to a Franchise Agreement entered into with the Company prior to termination or expiration of the development rights. |
| S. Modification of the Development Agreement | Section 26 | No modifications or amendment to the Development Agreement unless in writing and signed by the party against whom enforcement is sought. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, any modification or amendment to the Development Agreement must be in writing and signed by the party against whom enforcement is sought to be considered valid. This requirement is detailed in Section 26 of the Development Agreement.
This stipulation is fairly standard in franchising. It protects both the franchisee and B Bops by ensuring that any changes to the original agreement are documented and agreed upon by both parties. This prevents disputes arising from verbal agreements or misunderstandings about modifications.
For a prospective B Bops franchisee, this means that any changes they negotiate to their Development Agreement must be formally documented and signed. They cannot rely on verbal assurances or informal communications. This requirement ensures that all parties are clear about their obligations and rights under the modified agreement.