When is a termination of the B Bops Development Agreement effective immediately upon notice?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Upon occurrence of any of the events set forth above, Company may, without prejudice to any other rights or remedies contained in this Agreement or provided by law or equity, terminate this Agreement by notice to Developer. Such termination shall be effective immediately upon receipt of written notice by Developer if the default is an event specified in paragraphs (1) through (6) above, to which no right of cure exists. Termination shall be effective thirty (30) days after receipt of written notice by Developer if the default is an event specified in paragraph (7) above and such default is not cured to Company's satisfaction within such period.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Development Agreement can be terminated by B Bops with immediate effect upon written notice to the Developer under specific circumstances. This immediate termination applies if the default event falls within paragraphs (1) through (6) of the agreement, and there is no right to cure these defaults.
This provision means that if a B Bops developer breaches the agreement in a way that falls under these specified paragraphs, B Bops can terminate the agreement without allowing the developer any time to fix the problem. The termination is effective as soon as the developer receives the written notice. This is a significant risk for developers, as any serious violation within those paragraphs could lead to an immediate loss of their development rights.
In contrast, if the default event is specified in paragraph (7), the developer has a 30-day cure period. If the developer fixes the issue to B Bops's satisfaction within that time, the agreement will not be terminated. If the default remains uncured, termination is effective 30 days after the developer receives written notice. Prospective B Bops developers should carefully review the Development Agreement to understand what constitutes a default under paragraphs (1) through (7) and the implications of each.