Are there specific requirements to renew or extend the B Bops Application Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Application Agreement | Summary | |-----------------------------------------------|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | A. Term of Agreement | Section 3 | The Company will inform you within 90 days from the effective date of the Application Agreement whether development rights or franchise rights will be granted. | | B. Renewal or Extension of | None | Not applicable. | | the Term | | | | C. Requirements for you to | None | Not applicable. | | Renew or Extend | | | 1 To the extent that Minnesota Statutes Section 80C.14 is applicable to the Development Agreement, the Company will comply with Section 80C.14, subdivisions 3, 4 and 5 which require, except in certain specified cases, that you be given ninety (90) days notice of termination (with sixty (60) days to cure) and one hundred eighty days (180) days notice for non-renewal.
2 Pursuant to Minnesota Statutes Section 80C.21 and Minnesota Rule Part 2860.4400J, these provisions shall not in any way abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C.
| D.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Application Agreement does not have specific requirements for renewal or extension. The table in Item 17 indicates that under the Application Agreement, renewal or extension of the term is 'Not applicable.' This suggests that the Application Agreement is a one-time agreement that does not contemplate renewal or extension.
In contrast, the Development Agreement does allow for renewal or extension of the term. Section 2 of the Development Agreement states that any renewal is to be on terms and conditions mutually agreed upon by B Bops and the franchisee at the expiration of the original term. However, the table also indicates that there are no specific requirements for the franchisee to renew or extend the Development Agreement.
This distinction is important for prospective franchisees to understand. The Application Agreement appears to be a preliminary agreement, possibly to evaluate the franchisee before entering into a longer-term Development Agreement. If a franchisee is interested in continuing their relationship with B Bops beyond the initial term, they should focus on the terms and conditions of the Development Agreement, which does allow for renewal under mutually agreeable terms.