What is the significance of Appendix III in relation to the B Bops development agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
such location.
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- EXECUTION OF UNIT FRANCHISE AGREEMENT. Upon approval of a proposed site, Company shall grant Developer the right and license to own and operate a B-Bop's Restaurant at such site, provided that Developer is in compliance with the terms of this Agreement and the terms of all Unit Franchise Agreements between the parties. Subject to the foregoing, Company shall forward to Developer a Unit Franchise Agreement to be executed with respect to the approved site. The Unit Franchise Agreement shall be the standard form of franchise agreement being utilized by Company to grant franchises at the time of development of each Unit. Developer shall execute the Unit Franchise Agreement in accordance with Company's instructions within twenty (20) days of receipt thereof and return it, together with the initial franchise fee payable for the Unit (as specified in Appendix III), to Company. In the event Developer fails to return the Unit Franchise Agreement and the initial franchise fee to Company within such twenty (20) day period, Company's approval of the site shall be null and void and Developer shall have no rights with respect to such site. The parties hereby acknowledge and agree that the terms and conditions of the Unit Franchise Agreement executed for the Unit developed pursuant to this Agreement shall govern and control the franchise relationship for each such Unit, except to the extent that such terms and conditions conflict with the provisions of this Agreement, in which event the provisions of this Agreement shall control. The parties further acknowledge and agree that the terms and conditions of each Unit Franchise Agreement executed pursuant to this Agreement shall remain in full force and effect notwithstanding the expiration and termination of this Agreement.
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- PROCUREMENT OF SITE AND CONSTRUCTION OF UNIT. Upon receipt of Company's approval of a proposed site, Developer shall immediately take the necessary steps to acquire the site (by purchase, lease or sublease) and obtain the rights to construct and operate a Unit on the site. As soon as practicable after procuring the site, Developer agrees to commence construction of the Unit in accordance with the terms of the Unit Franchise Agreement executed for such Unit, provided, however, that the Development Schedule imposed herein shall be in lieu of the terms of such Unit Franchise Agreement governing the time periods for construction and opening of the Unit.
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- FINANCIAL INFORMATION. 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.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, Appendix III specifies the initial franchise fee payable for each unit developed under the multiple-unit development agreement. When a proposed site is approved, B Bops grants the developer the right to own and operate a restaurant at that location, assuming the developer is compliant with the development agreement and all unit franchise agreements.
B Bops will then forward a Unit Franchise Agreement to the developer, who must execute it within 20 days of receipt, along with the initial franchise fee as detailed in Appendix III. Failure to return the agreement and fee within this period renders the site approval null and void. The terms of the Unit Franchise Agreement govern the franchise relationship for each unit, unless they conflict with the development agreement, in which case the development agreement prevails.
Specifically, the development fee outlined in Appendix III includes a portion that will be applied towards the initial franchise fee required under each Unit Franchise Agreement. The payment terms in the development agreement supersede any conflicting terms in the Unit Franchise Agreement regarding the amount and timing of the initial franchise fee. This ensures that the developer understands how the initial development fee contributes to the subsequent franchise fees for individual B Bops restaurant units.