What is the applicant agreeing to when signing the B Bops Application Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
ICATION AGREEMENT
| THIS APPLICATION AGREEMENT (the "Agreement") made and entered into as of the date set forth below, by and between B-Bop's Franchising Corp., an Iowa corporation with its |
|---|
| principal place of business located at 2900 100th St., Suite 302, Urbandale, Iowa 50322 |
| ("Company"), |
| and |
| of |
| ("Applicant"). |
| In consideration of the mutual covenants contained herein, Company and Applicant agree |
| as follows: |
| 1. |
| Applicant hereby applies to Company to be considered for the purchase of the |
| following (check one only): |
| the rights to own and operate one B-Bop's Restaurant in the trade area |
| described in Appendix I hereto. |
| the rights to develop on an exclusive basis a number of B-Bop's |
| Restaurants in the trade area described in Appendix I hereto. |
For purposes of this Agreement, the rights applied for in this Section 1 shall be referred to as the "Rights" and the trade area described in Appendix I hereto shall be referred to as the "Trade Area".
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- Applicant has deposited with Company the sum of $5,000 to cover certain expenses to be incurred by Company in: (i) reviewing Applicant's application for the Rights; (ii) reviewing prospective sites submitted by Applicant for approval; and (iii) providing such additional assistance or information as Company may in its discretion deem appropriate to enable Applicant to determine its interest in providing the Rights. For purposes of this Agreement, the deposit specified above shall be referred to as the "Deposit". Applicant agrees that the Deposit shall not bear interest and that it may be co-mingled with other Company funds.
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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.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Application Agreement outlines the initial steps and understandings between the applicant and B Bops Franchising Corp. By signing this agreement, the applicant is formally applying to be considered for the purchase of rights to own and operate a B Bops Restaurant within a specific trade area, or to develop multiple B Bops Restaurants on an exclusive basis within that area. This application signifies the applicant's interest in becoming a B Bops franchisee or area developer and their agreement to adhere to the terms outlined in the document.
The applicant also acknowledges that any information provided by B Bops is confidential and contains trade secrets that remain the exclusive property of B Bops. The applicant commits to keeping this information confidential and not disclosing it to any third party without prior written consent from B Bops. This includes not reproducing or making copies of the confidential information. Upon termination of the agreement or if B Bops decides not to grant the rights to the applicant, all confidential information must be immediately returned to B Bops.
Furthermore, the applicant agrees not to enter into any binding agreements for the lease or purchase of a site before receiving written approval from B Bops. The FDD states that B Bops's approval of a site does not guarantee the success of the location. The applicant also waives any rights to damages or reimbursement from B Bops for expenses incurred while investigating the feasibility of purchasing the rights. These costs remain the sole responsibility of the applicant. The agreement also specifies that it constitutes the entire understanding between the parties and can only be modified by a written document executed by both the applicant and B Bops, governed by the laws of Iowa.