Under the B Bops agreement, what happens if a receiver is appointed for the developer's assets?
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' 2025 Franchise Disclosure Document, the appointment of a receiver for the developer's assets is grounds for termination of the agreement. Specifically, if a receiver or other liquidating officer is appointed to take charge of all or a substantial part of the Developer's assets, B Bops has the right to terminate the agreement.
B Bops can terminate the agreement with a written notice to the developer. The termination is effective immediately once the developer receives the notice. This means the developer loses the rights to develop further B Bops restaurants in the designated area.
This clause protects B Bops by allowing them to end the agreement if the developer faces significant financial issues. For a potential B Bops developer, this highlights the importance of maintaining financial stability. If a developer's assets come under the control of a receiver, the developer risks losing their development rights with B Bops.