Under what circumstances will B Bops use the multiple-unit arrangement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the multiple-unit arrangement, the Company utilizes the Multiple-Unit Development Agreement attached hereto as Exhibit D (the "Development Agreement") to grant development rights. If the Company approves your application for development rights, you will sign a Development Agreement and be granted the right to establish a specified number of Franchises in a defined trade area in accordance with a development schedule negotiated between you and the Company. So long as you comply with the development schedule (and the Development Agreement otherwise remains in effect), the Company and its affiliates cannot develop the defined trade area through the establishment of Company-owned units or through the sale of Franchises to other persons. Each Franchise established in the trade area will be governed by a separate franchise agreement you must sign, with such franchise agreement to be in the form of the standard franchise agreement being utilized by the Company at the time to grant new Franchises. The multiple-unit arrangement will be used only in larger metropolitan areas that are capable of supporting a number of Franchises. In the event you are a corporation, limited liability company or partnership, your shareholders, members or partners will be required to personally guaranty your obligations under the Development Agreement and each franchise agreement executed with the Company.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the company employs both single-unit and multiple-unit arrangements for establishing franchises. Under the multiple-unit arrangement, B Bops uses a Multiple-Unit Development Agreement to grant development rights. If B Bops approves an application for development rights, the franchisee will sign a Development Agreement and be granted the right to establish a specified number of franchises in a defined trade area according to a development schedule negotiated between the franchisee and B Bops.
So long as the franchisee complies with the development schedule and the Development Agreement remains in effect, B Bops and its affiliates cannot develop the defined trade area through company-owned units or by selling franchises to other persons. Each franchise established in the trade area will be governed by a separate franchise agreement that the franchisee must sign, with such franchise agreement to be in the form of the standard franchise agreement being utilized by B Bops at the time to grant new franchises.
B Bops will use the multiple-unit arrangement only in larger metropolitan areas capable of supporting a number of franchises. In the event the franchisee is a corporation, limited liability company, or partnership, its shareholders, members, or partners will be required to personally guarantee the obligations under the Development Agreement and each franchise agreement executed with B Bops. This arrangement offers a franchisee the opportunity to develop multiple locations within a protected territory, but it also carries the responsibility of meeting the agreed-upon development schedule and financial obligations.