Does the termination of the B Bops Development Agreement affect the rights of the developer to operate any Unit in accordance with the terms of any Unit Franchise Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Termination or expiration of this Agreement shall not affect the rights of Developer to operate any Unit in accordance with the terms of any Unit Franchise Agreement which Developer has entered into with Company, until and unless such Unit Franchise Agreement is terminated in accordance with its terms. Developer acknowledges that upon termination or expiration hereof, Company shall be entitled to: (i) retain the balance of the development fee not applied towards initial franchise fees prior to termination or expiration hereof; and (ii) establish, or license others to establish, B-Bop's Restaurants in the Trade Area, except to the extent limited by the terms of any Unit Franchise Agreement executed by Company and Developer.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the termination or expiration of the Development Agreement does not affect the developer's rights to operate a B Bops unit, as long as the Unit Franchise Agreement is still in effect. The developer can continue to operate the unit under the terms of the Unit Franchise Agreement, even if the Development Agreement is terminated or expires. However, this right is contingent upon the Unit Franchise Agreement remaining active and not being terminated separately according to its own terms.
This provision protects the developer's investment in already-established B Bops locations. Even if the overall development agreement ends, the franchisee can continue running existing restaurants. This offers a degree of security, as the developer's operational units are not automatically jeopardized by the termination of the broader development agreement.
However, the developer cannot establish or operate any new B Bops units if a Unit Franchise Agreement has not been executed by B Bops prior to the termination or expiration of the Development Agreement. The franchisor also retains the right to establish or license others to establish B Bops Restaurants in the trade area, except as limited by the terms of any Unit Franchise Agreement executed by B Bops and the developer. This means that while existing unit operations are protected, future expansion under the development agreement is not guaranteed after termination or expiration.