What is the applicant obligated to maintain upon termination of the B Bops agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Company's obligation to return the Deposit, or a portion thereof, as required by Section 7 hereof and Applicant's obligation to return all confidential information and to maintain confidentiality with respect thereto as required by Section 5 hereof shall survive the termination of this Agreement.
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Applicant acknowledges that any information provided by Company with respect to a B-Bop's Restaurant is highly confidential and contains trade secrets of Company.
Applicant further acknowledges that such confidential information shall at all times remain the exclusive property of Company.
Applicant agrees that Applicant will keep confidential and will not, directly or indirectly, divulge, disclose or in any other manner communicate the contents of such confidential information to any person or entity, nor reproduce or make copies of any of such confidential information, except with the prior written consent of Company.
Applicant shall immediately return all confidential information (without retaining copies thereof) to Company upon: (i) termination of this Agreement for any reason whatsoever by either party hereto; or (ii) Company's determination not to grant the Rights to Applicant.
If this Agreement is terminated or if Company declines to grant the Rights to Applicant, Applicant agrees to refrain from any further use of Company's confidential information for any purpose whatsoever.
Upon receipt by Company of all confidential information, Company shall return to Applicant the Deposit, or a portion thereof, in accordance with the provisions of Section 7 hereof.
Failure to return any confidential information shall result in forfeiture of the entire Deposit and in such other action as Company may in its discretion deem appropriate.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, upon termination of the Application Agreement, the applicant is obligated to return all confidential information to B Bops and maintain confidentiality with respect to that information. This includes refraining from any further use of B Bops's confidential information for any purpose. The return of the confidential information is a prerequisite for the applicant to receive a refund of the deposit, or a portion thereof, as outlined in Section 7 of the agreement. Failure to return the confidential information results in forfeiture of the entire deposit.
This obligation ensures that B Bops's proprietary information and trade secrets remain protected even if the applicant does not ultimately become a franchisee. The confidential information remains the exclusive property of B Bops, and the applicant agrees not to disclose or reproduce any of it without prior written consent from B Bops. This includes any information provided by B Bops with respect to a B Bops Restaurant, which is considered highly confidential and contains trade secrets.
For a prospective B Bops franchisee, this means that even if the initial application is terminated, the responsibility to safeguard B Bops's confidential information persists. This is a standard practice in franchising to protect the franchisor's business methods and trade secrets. The applicant should be aware of the scope of the confidential information and the importance of returning all materials to avoid forfeiting the deposit and potential legal action.