What specific right does the B Bops Company grant to the Franchisee in the Franchise Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
temporary basis.
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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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- EXCLUSIVITY. Company shall not during the Term of this Agreement open or franchise another B-Bop's Restaurant or any other restaurant business serving similar items within a two (2) mile radius of the Franchise Premises. Company reserves the right to grant and sell franchises to others to operate, and to own and operate for its own account or with others, a B-Bop's Restaurant at any location other than as restricted in this Section 3.
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- COMMENCEMENT OF OPERATIONS. Franchisee agrees to open and commence operation of the Franchise as soon as practicable after the effective date of this Agreement. In no event shall such opening and commencement of operations be delayed beyond eight (8) months from the effective date of this Agreement, unless an extension of time is granted in writing by Company. Where Franchisee has exhibited due diligence in complying with this Section 4, Company may, in its sole discretion, consent to an extension of the eight (8) month time period specified herein. Company shall not unreasonably withhold its consent when the delay results from circumstances beyond the reasonable control of Franchisee.
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- DEVELOPMENT OF FRANCHISE PREMISES. Franchisee agrees to secure, at its sole expense, a site for the Franchise Premises which shall be approved in writing by Company as being suitable for use as a B-Bop's Restaurant. Using the construction plans and specifications
provided by Company, Franchisee shall be responsible, at its sole cost, for selecting an architect to transform such specifications into site specific plans and specifications which shall comply with all local codes, regulations and ordinances applicable to construction of the Franchise Premises and operation of the Franchise.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the company grants the franchisee a nonexclusive right, license, and franchise to operate a B Bops restaurant. The term of this agreement lasts for 15 years, commencing on the effective date of the agreement, unless terminated earlier according to its provisions. The franchisee is expected to operate the franchise continuously throughout this term, adhering to the agreement's terms and conditions.
B Bops also provides a limited exclusivity, stating that it will not open or franchise another B Bops restaurant or any similar restaurant within a two-mile radius of the franchisee's location during the agreement's term. However, B Bops retains the right to grant and sell franchises to others or operate its own restaurants outside this restricted area.
The franchisee's rights are specifically limited to operating a B Bops restaurant at the approved franchise premises. The franchisee cannot subfranchise, sublicense, or authorize anyone else to operate a B Bops restaurant or use the licensed system and marks. The franchisee has no right to operate a B Bops restaurant at any other location, whether permanently or temporarily.