Does the B Bops Application Agreement obligate the company to grant the applicant the Rights?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
APPLICANT UNDERSTANDS AND AGREES THAT NOTHING CONTAINED IN THIS AGREEMENT OBLIGATES COMPANY TO GRANT APPLICANT THE RIGHTS.
THE PARTIES HERETO ACKNOWLEDGE THAT COMPANY AND APPLICANT EACH HAVE THE RIGHT TO TERMINATE THIS AGREEMENT, WITHOUT CAUSE, AT ANY TIME BY WRITTEN NOTICE TO THE OTHER, IN WHICH CASE, THE DEPOSIT, OR A PORTION THEREOF, SHALL BE RETURNED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 7 HEREOF.
A DECISION BY COMPANY NOT TO GRANT THE RIGHTS TO APPLICANT, WHEN COMMUNICATED TO APPLICANT IN WRITING, SHALL BE DEEMED TO IMMEDIATELY TERMINATE THIS AGREEMENT, WHEREUPON APPLICANT SHALL HAVE NO FURTHER INTEREST IN THE TRADE AREA.
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 does not obligate the company to grant the applicant the rights to purchase a B Bops Restaurant. The agreement explicitly states that nothing within it compels B Bops to grant these rights. Both B Bops and the applicant have the right to terminate the agreement at any time by providing written notice. If B Bops decides not to grant the rights, the agreement is immediately terminated, and the applicant loses any interest in the trade area.
If the agreement is terminated, the applicant's rights are limited to the return of their 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 and expenses are the sole responsibility of the applicant, and B Bops has no liability regarding them.
Prior to informing the applicant of its decision, B Bops agrees not to negotiate with any third party regarding the potential purchase of a B Bops Restaurant in the trade area. The term "negotiate" includes executing an Application Agreement, accepting a deposit, or providing assistance or information to any third party. However, B Bops is allowed to provide an information package or Franchise Offering Circular to any third party interested in purchasing a B Bops Restaurant in the Trade Area. Upon termination of the agreement by either party, B Bops is entitled to negotiate with other parties.