Under what circumstances will the B Bops franchise agreement automatically terminate due to loss of premises?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
ON OR RELOCATION. Upon termination of the lease for the Franchise Premises (in the absence of a default thereunder by Franchisee), upon the taking by eminent domain of all or a material part of the Franchise Premises or upon failure to repair and reopen the Franchise Premises for business within six (6) months after the Franchise Premises has been damaged or destroyed by fire or other casualty, this Agreement and the Franchise granted hereunder shall automatically terminate; provided, however, that Company and Franchisee may agree on a new location reasonably suited for the Franchise, provided that such new location is constructed, equipped and fully operational within six (6) months of discontinuing operations on the Franchise Premises, all in accordance with the then current standards of Company at the time of relocation. If Company and Franchisee agree upon a new location for the Franchise, this Agreement will be amended to reflect the new location and will remain in effect for the remainder of the Term. Upon agreeing on a new location, Franchisee agrees to pay Company a relocation fee of One Thousand Dollars ($1,000) for its assistance in approving
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchise agreement will automatically terminate under specific circumstances related to the loss of the franchise premises. These circumstances include the termination of the lease for the premises without franchisee default, the taking of all or a material part of the premises by eminent domain, or the failure to repair and reopen the premises within six months after damage or destruction by fire or other casualty.
However, the automatic termination can be avoided if B Bops and the franchisee agree on a new location that is reasonably suited for the franchise. To prevent termination, the new location must be constructed, equipped, and fully operational within six months of discontinuing operations at the original franchise premises, adhering to B Bops's then-current standards.
If a new location is agreed upon, the franchise agreement will be amended to reflect the new location and will remain in effect for the remainder of the original term. Additionally, the franchisee must pay B Bops a relocation fee of $1,000 for its assistance in approving the new location. This clause provides a potential pathway for the franchisee to continue operating their B Bops franchise even if the original location is no longer viable, subject to the franchisor's approval and adherence to specific timelines and standards.