What section of the B Bops Franchise Agreement addresses insurance requirements?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation1 | Section in Agreement2 | Disclosure Document Item |
|---|---|---|
| A. Site selection and acquisition/lease | Section 3 of Application Agreement; Sections 4 and 5 of Franchise Agreement; Sections 4, 5, 7 and 9 of Development Agreement | Items 7, 11 and 12 |
| B. Pre-opening purchases/leases | Sections 5 and 6 of Franchise Agreement | Items 7 and 8 |
| C. Site development and other pre-opening requirements | Section 3 of Application Agreement; Sections 4, 5 and 6 of Franchise Agreement; Sections 1, 4, 5, 6 and 7 of Development Agreement | Items 7, 11 and 12 |
| D. Initial and ongoing training | Sections 7 and 11 of Franchise Agreement | Items 7 and 11 |
| E. Opening | Sections 4 and 5 of Franchise Agreement; Sections 1, 4 and 7 of Development Agreement | Items 7 and 11 |
| F. Fees | Section 2 of Application Agreement; Sections 9, 10, 11, 15, 18, 19, 24 and 26 of Franchise Agreement; Sections 3, 6, 13 and 16 of Development Agreement | Items 5, 6 and 7 |
| G. Compliance with standards and policies/operations manual | Sections 1, 5, 6, 8, 10 and 13 of Franchise Agreement | Items 8, 11, 15 and 16 |
| H. Trademarks and proprietary Information | Section 5 of Application Agreement; Sections 1, 12 and 13 of Franchise Agreement; Sections 9 and 10 of Development Agreement | Items 5, 13 and 14 |
| I. Restrictions on | Section 10 of Franchise | Items 8 and 16 |
| products/services offered | Agreement | |
| J. Warranty and customer | Section 10 of Franchise | Item 16 |
| Service requirements | Agreement | |
| K. Territorial development and | Sections 1 and 4 of Development | Item 12 |
| sales quota | Agreement | |
| L. Ongoing product/service | Sections 6 and 8 of Franchise | Items 8 and 11 |
| Purchases | Agreement | |
| M. Maintenance, appearance | Sections 1, 10 and 18 of | Items 7 and 17 |
| and remodeling requirements | Franchise Agreement | |
| N. Insurance | Section 14 of Franchise Agreement | Items 7 and 8 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 23–25)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, Section 14 of the Franchise Agreement outlines the franchisee's insurance obligations. This information is part of a larger table that summarizes the franchisee's principal obligations under the franchise and other agreements.
This means that as a prospective B Bops franchisee, you should carefully review Section 14 of the Franchise Agreement to understand the specific types and amounts of insurance coverage you will be required to maintain throughout the term of the franchise. These insurance requirements are also referenced in Items 7 and 8 of the Disclosure Document, which likely contain further details about the initial investment and ongoing expenses related to insurance.
Understanding the insurance requirements is crucial because failing to maintain adequate coverage could result in a breach of the Franchise Agreement. B Bops, like most franchisors, requires franchisees to carry insurance to protect both the franchisee's business and the B Bops brand from potential liabilities. Therefore, it is important to factor in the cost of insurance when evaluating the overall financial investment required to open and operate a B Bops franchise.