Can either the B Bops company or the applicant terminate the Application Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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, both the company and the applicant have the right to terminate the Application Agreement. Either party can terminate the agreement without cause at any time by providing written notice to the other party. If the agreement is terminated, the deposit, or a portion of it, will be returned according to the provisions outlined in Section 7 of the agreement.
If B Bops decides not to grant the rights to the applicant, written communication of this decision will immediately terminate the agreement, and the applicant will no longer have any interest in the trade area. Upon termination, the applicant must return all confidential information to B Bops. Once B Bops receives all confidential information, they will return the deposit, or a portion thereof, as specified in Section 7.
Section 7 details the refund process. If B Bops grants the rights to the applicant, the deposit will be credited towards the initial franchise fee or the development fee, whichever is applicable. If B Bops does not grant the rights, or if either party terminates the agreement, the applicant is entitled to a refund of the deposit, minus the lesser of $4,500 or the actual expenses incurred by B Bops in providing services as identified in Section 2. Actual expenses include travel, lodging, living expenses of B Bops personnel, out-of-pocket expenses, and a charge of $100 per hour for office time spent reviewing or preparing information. B Bops will forward any refund within ten days after the applicant returns all confidential information. Failure to return confidential information results in forfeiture of the entire deposit.
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 not prohibited from providing an information package or Franchise Offering Circular to any interested third party. Upon termination of the agreement by either party, B Bops is entitled to negotiate with other parties.