Does the B Bops company have absolute discretion in determining whether to grant the Rights to the 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
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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 decision to grant the Rights is entirely up to them. This determination is based on several factors. These factors include the applicant's character, business background, financial resources, ability to obtain financing, the location of an acceptable premises, negotiation of an acceptable lease or purchase agreement, and the ability to secure necessary permits and licenses.
This clause means that even if an applicant meets all the initial qualifications and invests time and money into the application process, B Bops is not obligated to approve the franchise. The applicant acknowledges this and agrees to use their best efforts to arrange financing, select sites for approval, and take necessary actions to be in a position to purchase the Rights if granted. The applicant is solely responsible for arranging financing and securing acceptable sites.
Furthermore, the agreement specifies that nothing within it obligates B Bops to grant the Rights to the applicant. This reinforces the franchisor's control over who becomes a franchisee. The applicant bears the risk that their efforts and expenses in pursuing the franchise may not result in approval. This is a significant consideration for potential franchisees, as it highlights the uncertainty involved in the initial stages of the franchise process with B Bops.
In the event that 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 provided 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, acknowledging that these costs are their sole responsibility. This further emphasizes the financial risk assumed by the applicant during the application process.