Does the applicant waive rights to damages or reimbursement from B Bops for expenses incurred while investigating the feasibility of purchasing rights?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of this Agreement for any reason whatsoever by either party hereto, or upon Company's determination not to grant the Rights to Applicant, the rights of Applicant shall be limited solely to the return of the Deposit, or a portion thereof, as provided in Section 7 hereof. Applicant hereby waives any and all rights to any damages and/or reimbursement from Company or any affiliate, director, officer, employee or agent thereof for expenses or costs incurred by Applicant in investigating the feasibility of purchasing the Rights. Applicant hereby acknowledges that any such costs or expenses are the sole obligation and responsibility of Applicant and that Company and its affiliates, directors, officers, employees and agents shall have no liability whatsoever with respect to such costs or expenses.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, an applicant waives rights to damages or reimbursement from B Bops for expenses or costs incurred while investigating the feasibility of purchasing rights. The applicant acknowledges that these costs and expenses are their sole responsibility. B Bops and its affiliates, directors, officers, employees, and agents have no liability regarding these costs or expenses.
This means that if a potential franchisee spends money on travel, legal fees, consulting, or other costs while considering whether to buy a B Bops franchise, they cannot seek compensation from B Bops for these expenses, even if they ultimately decide not to purchase the franchise or if B Bops decides not to grant them the rights.
This type of waiver is relatively common in franchising. It protects the franchisor from potential claims by applicants who might argue that they relied on the franchisor's representations when incurring expenses. Prospective franchisees should carefully consider the potential costs of due diligence and factor them into their decision-making process, understanding that these expenses are non-refundable regardless of the outcome of their application.