What are the conditions that affect B Bops' decision to grant the Rights to an applicant?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
to Company.
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- 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.
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- Applicant acknowledges that any information provided by Company with respect to a B-Bop's Restaurant is highly confidential and contains trade secrets of Company. Applicant further acknowledges that such confidential information shall at all times remain the exclusive property of Company. Applicant agrees that Applicant will keep confidential and will not, directly or indirectly, divulge, disclose or in any other manner communicate the contents of such confidential information to any person or entity, nor reproduce or make copies of any of such confidential information, except with the prior written consent of Company. Applicant shall immediately return all confidential information (without retaining copies thereof) to Company upon: (i) termination of this Agreement for any reason whatsoever by either party hereto; or (ii) Company's determination not to grant the Rights to Applicant. If this Agreement is terminated or if Company declines to grant the Rights to Applicant, Applicant agrees to refrain from any further use of Company's confidential information for any purpose whatsoever. Upon receipt by Company of all confidential information, Company shall return to Applicant the Deposit, or a portion thereof, in accordance with the provisions of Section 7 hereof.
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- Prior to informing Applicant of Company's decision of whether the Rights will be granted, Company agrees that it shall not negotiate with any third party regarding the potential purchase of a B-Bop's Restaurant in the Trade Area. For purposes of this Section 6, the term "negotiate" shall mean the execution of an Application Agreement with any third party, the acceptance of a deposit from any third party or the providing of any assistance or information identified in this Agreement to any third party. Nothing in this Section 6 shall prohibit Company from providing an information package or Franchise Offering Circular to any third party interested in purchasing a B-Bop's Restaurant in the Trade Area with any third party for the purchase of a B-Bop's Restaurant in 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).
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the company retains the sole discretion to grant or deny franchise rights to an applicant. The document states that nothing within the agreement obligates B Bops to grant these rights. This means that even after an applicant has signed an agreement and potentially paid a deposit, B Bops can still decide not to proceed with the franchise.
B Bops and the applicant both have the right to terminate the agreement without cause, provided they give 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. The applicant is entitled to a refund of the deposit, minus certain expenses, after returning all confidential information to B Bops. These expenses include either $4,500 or the actual costs incurred by B Bops for services rendered, covering travel, lodging, out-of-pocket expenses, and an hourly charge of $100 for reviewing or preparing information.
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-Bop's Restaurant in the Trade Area. However, B Bops is allowed to provide information packages or Franchise Offering Circulars to interested third parties. Upon termination of the agreement by either party, B Bops is free to negotiate with other potential franchisees. This clause protects the applicant's initial interest while B Bops evaluates their application but allows B Bops to pursue other opportunities if the agreement is terminated.