Under what conditions can the B Bops Development Agreement be modified?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| M. Conditions for the Company approval of transfer | Section 13 | Proposed transferee must satisfy the Company's current standards for new developers; assumption of Development Agreement; execution of general release (to the extent permitted by Minnesota law) and nondisclosure and noncompetition agreement; payment of $3,000 transfer fee; compliance with transfer provisions of Franchise Agreement if any Franchises simultaneously being transferred; and compliance with right of first refusal granted to the Company. |
|---|---|---|
| N. The Company's right of first refusal to acquire your development rights | Section 13(D) | The Company has the right to purchase the development rights or any ownership interest in the entity owning the development rights upon the same terms and conditions as contained in any bona fide offer received from a third party. |
| O. The Company's option to | None | Not applicable. |
| purchase your development | ||
| rights | ||
| P. Your death or disability | Section 13(B) | The development rights, or any controlling interest in any entity owning the development rights, must be transferred to an approved transferee, with the Company to be notified of the proposed transferee within six (6) months of death or disability. |
| Q. Non-competition covenants | Section 12 | No involvement in a business substantially |
| during the term of the | similar to a B-Bop's Restaurant at any | |
| Development Agreement | location. | |
| R. Non-competition covenants after the development rights are terminated or expire | Section 12 | No involvement in a business substantially similar to a B-Bop's Restaurant for two (2) years after termination or expiration within: (i) the trade area specified in the Development Agreement; or (ii) 20 miles of any other B-Bop's Restaurant then in operation or under development, except that you will be entitled to continue to operate any B-Bop's Restaurant pursuant to a Franchise Agreement entered into with the Company prior to termination or expiration of the development rights. |
| S. Modification of the Development Agreement | Section 26 | No modifications or amendment to the Development Agreement unless in writing and signed by the party against whom enforcement is sought. |
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 Development Agreement can only be modified if the changes are documented in writing and signed by the party against whom enforcement of the modification is sought. This requirement ensures that any changes to the original agreement are formally agreed upon and legally binding, preventing disputes based on verbal agreements or misunderstandings. This is a standard practice in franchising to protect both the franchisor and the franchisee.
This provision means that a B Bops franchisee should ensure that any agreed-upon changes to their Development Agreement are put in writing and properly signed. Without this written and signed modification, the original terms of the Development Agreement will remain in effect. This protects the franchisee by ensuring that B Bops cannot enforce any undocumented changes to the agreement.
It is important for prospective B Bops franchisees to understand this clause, as it dictates how the terms of their Development Agreement can be altered throughout the relationship. Franchisees should be diligent in documenting any agreed-upon modifications to avoid potential conflicts or misunderstandings in the future.