Under what conditions can the B Bops Development Agreement be terminated earlier?
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's 2025 Franchise Disclosure Document, the company can terminate the Development Agreement early if certain events occur. Specifically, B Bops may terminate the agreement if the developer defaults on certain obligations. If the default involves events specified in paragraphs (1) through (6), the termination is effective immediately upon the developer receiving written notice, and there is no opportunity to cure the default. For a default specified in paragraph (7), termination becomes effective 30 days after the developer receives written notice, provided the developer does not resolve the issue to B Bops's satisfaction within that 30-day period.
This means a prospective B Bops developer could lose their development rights immediately for severe breaches of the agreement, while they might have a short window to correct other types of defaults. Upon termination, the developer loses the right to develop further B Bops restaurants in the designated area, and B Bops is entitled to retain any unapplied development fees. However, the developer's rights to operate existing B Bops units under previously executed Unit Franchise Agreements remain in effect unless those agreements are separately terminated.
It is important for a potential B Bops developer to understand the specific events listed in paragraphs (1) through (7) that trigger termination, as these define the circumstances under which their development rights could be immediately revoked or subject to a cure period. This also highlights the importance of adhering to the terms of the Development Agreement to avoid potential default and subsequent termination.