Does B Bops have the right to terminate the development agreement without cause?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| A. Term of development | Section 2 | To be negotiated between parties based on |
| Rights | length of development schedule | |
| B. Renewal or extension of the term1 | Section 2 | Any renewal to be on such terms and conditions as the Company and you may mutually agree upon expiration of the original term. |
| C. Requirements for you to | None | Not applicable. |
| renew or extend | ||
| D. Termination by you | None | Not applicable. |
| E. Termination by the Company | None | Not applicable. |
| without cause1 | ||
| F. Termination by the Company with "cause"1 | Section 11 | The Company can terminate if you default in performance of the Development Agreement or if certain other events occur. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the company does not have the right to terminate the Development Agreement without cause. Item 17 outlines the terms for renewal, termination, transfer and dispute resolution of the Development Agreement.
The table within Item 17 indicates that under the Development Agreement, there is no section that allows B Bops to terminate the agreement without cause. However, B Bops can terminate the Development Agreement with cause if the franchisee defaults in the performance of the Development Agreement or if certain other events occur, as detailed in Section 11 of the agreement.
It is important to note that Minnesota Statutes Section 80C.14 may be applicable to the Development Agreement, which requires B Bops to provide ninety (90) days notice of termination (with sixty (60) days to cure) and one hundred eighty (180) days notice for non-renewal, except in certain specified cases. This provision ensures that franchisees operating in Minnesota are afforded certain protections under state law.