Under what conditions can B Bops terminate the Development Agreement with cause?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development | Summary |
|---|---|---|
| Agreement | ||
| A. Term of development | Section 2 | To be negotiated between parties based on |
| Rights | length of development schedule | |
| B. Renewal or extension of the term1 | Section 2 | Any renewal to be on such terms and conditions as the Company and you may mutually agree upon expiration of the original term. |
| C. Requirements for you to | None | Not applicable. |
| renew or extend | ||
| D. Termination by you | None | Not applicable. |
| E. Termination by the Company | None | Not applicable. |
| without cause1 | ||
| F. Termination by the Company with "cause"1 | Section 11 | The Company can terminate if you default in performance of the Development Agreement or if certain other events occur. |
| G. "Cause" defined-curable defaults1 | Section 11 | You will have thirty days after receipt of written notice to cure any default in the performance of any covenant or obligation under the Development Agreement (apart from any obligation as to which no right of cure exists - see below). |
|---|---|---|
| H. "Cause" defined-non-curable defaults1 | Section 11 | Use of the Licensed System or the Licensed Marks at any location except as authorized by a franchise agreement with the Company; insolvency proceedings (including an assignment for the benefit of creditors, appointment of a receiver or similar officer or the commencement of bankruptcy proceedings) involving you or any of your owners who hold a controlling interest or who are responsible for management; conviction or plea of guilty or no contest by you or any of your owners to any felony or any crime relating to operation of any Franchise; any purported transfer of the Development Agreement, the development rights or any ownership interest which fails to comply with Section 13 of the Development Agreement; termination of any franchise agreement with the Company; |
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 company can terminate the Development Agreement with cause if the franchisee defaults in the performance of the Development Agreement or if certain other events occur, as detailed in Section 11 of the agreement.
Specifically, Section 11 outlines both curable and non-curable defaults. For curable defaults, the franchisee has thirty days after receiving written notice to correct any failure to meet obligations under the Development Agreement, unless the obligation is one for which no cure is permitted.
Non-curable defaults, which allow B Bops to terminate the agreement immediately, include using the Licensed System or Licensed Marks at unauthorized locations, involvement in insolvency proceedings, conviction of a felony or crime related to franchise operations, unauthorized transfer of the Development Agreement, termination of any franchise agreement with B Bops, or any willful or fraudulent misrepresentation to B Bops regarding development rights. Upon termination, the franchisee's right to develop additional franchises immediately ends, resulting in the forfeiture of any remaining development fees not yet applied to initial franchise fees, and the loss of exclusive rights to develop the defined trade area.