What is the B Bops company obligated to do if they terminate the Application Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
n the Trade Area. Upon termination of this Agreement by either party, Company shall be entitled to negotiate.
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- If Company, in its sole discretion, determines to grant the Rights to Applicant, the Deposit shall be credited toward the amount required to be paid by Applicant as the initial
franchise fee or the development fee (whichever shall be applicable). If Company determines that the Rights will not be granted to Applicant, or if either party terminates this Agreement, Applicant shall be entitled to a refund (upon return of all confidential information) equal to the Deposit minus the lesser of: (i) Four Thousand Five Hundred Dollars ($4,500); or (ii) the actual expenses incurred by Company in providing the services identified in Section 2 hereof. For purposes of this Section 7, "actual expenses" shall be deemed to include all travel, lodging and other living expenses reasonably incurred by Company personnel, any other out of pocket expenses incurred by Company hereunder and a one hundred dollar ($100.00) per hour charge for office time spent reviewing information submitted by Applicant or preparing information to be furnished to Applicant. Company shall forward any refund to Applicant within ten (10) days after Applicant has returned all confidential information to Company. 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.
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- If Company determines to grant the Rights to Applicant, Company will forward appropriate documentation to Applicant for execution. Failure by Applicant to execute such documentation and to deliver it, together with payment of any initial franchise fee or development fee (whichever shall be applicable), to Company within fifteen (15) days after Applicant's receipt of such documents shall be deemed an election by Applicant not to purchase the Rights and to terminate this Agreement, at which time Company's grant of the Rights shall become null and void and Applicant shall have no further interest with respect to the Trade Area.
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- The parties hereto acknowledge that this Agreement does not constitute an offer of the Rights by Company, nor a commitment by Company to grant the Rights to Applicant. Applicant acknowledges that neither Company, nor anyone acting on behalf of Company, has made any representations, inducements, promises or agreements, orally or in writing, regarding the subject matter of this Agreement which are not contained herein.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, if B Bops terminates the Application Agreement, the company is obligated to return the deposit, or a portion of it, to the applicant. This refund is subject to certain deductions as outlined in Section 7 of the agreement. Specifically, the refund amount will be the deposit minus the lesser of $4,500 or the actual expenses incurred by B Bops in providing services detailed in Section 2 of the agreement. These 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 for the applicant.
B Bops is required to forward any refund to the applicant within ten days after the applicant returns all confidential information to the company. Failure to return all confidential information will result in the applicant forfeiting the entire deposit.
Furthermore, upon termination of the Application Agreement, B Bops is free to negotiate with other parties regarding the potential purchase of a B Bops Restaurant in the trade area. This includes executing an Application Agreement, accepting a deposit, or providing assistance or information to any third party. The applicant's rights are limited solely to the return of the deposit, or a portion thereof, as provided in Section 7, and they waive any rights to damages or reimbursement for expenses incurred while investigating the feasibility of purchasing the rights.