What is the 'Unit Franchise Agreement' for B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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Restaurants within the Trade Area in accordance with the Development Schedule and with the terms and conditions of this Agreement. Developer further agrees to develop, own, operate, maintain and promote each B-Bop's Restaurant (hereinafter referred to as a "Unit") in accordance with the terms and conditions contained in the standard form of franchise agreement being utilized by Company to grant B-Bop's Restaurant franchises at the time of development of each such Unit (hereinafter referred to as a "Unit Franchise Agreement"), to be executed by Developer as specified in Section 6 hereof. Company agrees that it shall not establish, or license any third party to establish, a B-Bop's Restaurant in the Trade Area prior to the termination or expiration of this Agreement.
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- TERM. The term of this Agreement and of the development rights granted hereunder shall commence upon the effective date of this Agreement and shall continue until the date specified in Appendix II attached hereto, unless terminated earlier in accordance with Section 11 hereof. Termination or expiration of this Agreement shall constitute a termination or expiration of the development rights granted hereunder. This Agreement and the development rights may be renewed upon such terms and conditions as Company and Developer may mutually agree upon expiration of the term hereof.
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- DEVELOPMENT FEE. In consideration of the development rights granted by Company hereunder, Developer agrees to pay Company by certified or cashier's check the development fee specified in Appendix III attached hereto upon execution of this Agreement. Such fee shall be deemed fully earned upon execution of this Agreement and shall not be refundable to Developer under any circumstances. Any deposit paid by Developer prior to execution of this Agreement shall be applied toward satisfaction of the development fee. A portion of such development fee, to be specified in Appendix III attached hereto, shall be applied by Company toward the initial franchise fee payable under the Unit Franchise Agreement executed for each Unit developed by Developer pursuant to this Agreement. Company and Developer acknowledge and agree that the payment terms imposed by this Agreement with respect to the development fee and the initial franchise fee payable for Units developed pursuant hereto are in lieu of and supersede the terms of any Unit Franchise Agreement relating to the amount and time of payment of the initial franchise fee.
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- TIMELY PERFORMANCE. The development rights provided hereunder have been granted by Company in reliance upon Developer's representations and assurances, among others, that the conditions set forth in this Agreement will be satisfied on a timely basis.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Unit Franchise Agreement is the standard form of franchise agreement that B Bops uses to grant franchises at the time each unit is developed. The developer must agree to develop, own, operate, maintain, and promote each B Bops Restaurant (referred to as a "Unit") according to the terms and conditions outlined in this agreement.
The developer is required to execute the Unit Franchise Agreement as specified in Section 6 of the agreement. Upon approval of a proposed site, B Bops will grant the developer the right to operate a B Bops Restaurant at that location, assuming the developer complies with the terms of the agreement and all Unit Franchise Agreements between the parties. B Bops will then forward the Unit Franchise Agreement to the developer for execution, which must occur within 20 days of receipt, along with the initial franchise fee. Failure to comply within this timeframe renders the site approval null and void.
The terms and conditions of the Unit Franchise Agreement will govern the franchise relationship for each unit, unless they conflict with the provisions of the development agreement, in which case the development agreement prevails. Importantly, the terms of each Unit Franchise Agreement remain in effect even after the expiration or termination of the development agreement.
In practical terms, this means that a B Bops franchisee will operate under the standard franchise terms in the Unit Franchise Agreement, but the development agreement takes precedence if conflicts arise. Furthermore, the franchisee's rights and obligations under the Unit Franchise Agreement continue even if the broader development agreement expires, providing a degree of operational stability.