Does B Bops have absolute discretion in determining whether to grant the Rights to an applicant?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Company agrees that within ninety (90) days of the effective date of this Agreement (which period may be extended by Company in its sole discretion), Company will inform Applicant in writing whether Applicant will be granted the Rights. Applicant acknowledges and understands that while Company agrees to consider Applicant for the Rights, Company shall have absolute discretion in determining whether to grant the Rights to Applicant. Applicant further acknowledges that Company's determination of whether to grant the Rights to Applicant will depend on a number of factors, including, but not limited to: (i) Applicant's character and business background; (ii) Applicant's financial resources and ability to obtain acceptable financing; (iii) location of an acceptable premises for operation of the business; (iv) negotiation of an acceptable agreement for the lease or purchase of such premises; and (v) Applicant's ability to secure all necessary permits and/or licenses for operation of the business. Applicant agrees to use Applicant's best efforts during the term of this Agreement to arrange
AA/MN/04/25/25
financing, to select proposed sites to be submitted to Company for approval and to take such other actions as may be necessary to place Applicant in a position to purchase the Rights, if the Rights are granted by Company. Applicant acknowledges that Applicant shall be solely responsible for arranging all financing and selecting and securing sites acceptable to Company.
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- APPLICANT UNDERSTANDS AND AGREES THAT NOTHING CONTAINED IN THIS AGREEMENT OBLIGATES COMPANY TO GRANT APPLICANT THE RIGHTS.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops retains absolute discretion in deciding whether to grant an applicant the Rights to develop a franchise. The document states that while B Bops will consider an applicant, the company has "absolute discretion" in making the final determination. This decision is based on several factors.
The factors B Bops considers include the applicant's character, business background, financial resources, and ability to obtain financing. Additionally, the location of an acceptable premises, the negotiation of a lease or purchase agreement for that premises, and the applicant's ability to secure necessary permits and licenses all play a role in B Bops's decision. The applicant must also use their best efforts to arrange financing, select suitable sites for approval, and take necessary actions to be in a position to purchase the Rights if granted.
This discretion means that even if an applicant meets all stated requirements, B Bops is not obligated to grant the Rights. The applicant deposits $5,000 with B Bops to cover expenses related to reviewing the application, prospective sites, and providing additional assistance. However, this deposit does not guarantee the Rights will be granted. The agreement explicitly states that nothing within it obligates B Bops to grant the Rights to the applicant.
If B Bops decides not to grant the Rights, the applicant's rights are limited to the return of the deposit, or a portion thereof, as outlined in Section 7 of the agreement. The applicant waives any rights to damages or reimbursement for expenses incurred while investigating the feasibility of purchasing the Rights. These costs remain the sole responsibility of the applicant, and B Bops assumes no liability for them.