Does a willful misrepresentation made by a B Bops developer during the site approval process constitute a default?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
AND TERMINATION.
- A. The occurrence of any of the following events shall constitute a default under this Agreement:
- (1) Developer uses the Licensed System or the Licensed Marks at any location except pursuant to, and in accordance with, a valid and effective Unit Franchise Agreement between the parties covering such lo
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a willful or fraudulent misrepresentation made to the company by a developer in connection with obtaining the Development Agreement, any Unit Franchise Agreement, or any site approval constitutes a default under the agreement. This is explicitly stated as one of the events that triggers a default.
If a default event occurs, B Bops has the right to terminate the Development Agreement by providing notice to the developer. If the default involves a willful or fraudulent misrepresentation, the termination is effective immediately upon the developer's receipt of the written notice, without any opportunity to cure the default. This means B Bops can immediately end the agreement if such a misrepresentation is discovered.
This provision is significant for prospective B Bops developers because it highlights the importance of honesty and accuracy in all dealings with the company, especially during the application and site approval processes. Any misrepresentation, even if unintentional, could potentially lead to immediate termination of the Development Agreement, resulting in the loss of development rights and any associated fees or investments. Developers should ensure they have accurate and verifiable information when presenting proposals or making statements to B Bops.