What is the consequence of a B Bops franchisee attempting to terminate the agreement outside the provisions outlined in Section 22?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
EVENTS UPON TERMINATION OR EXPIRATION.
Upon termination of this Agreement, or upon expiration of the Term of this Agreement without renewal, Franchisee agrees as follows:
- A.
Franchisee shall no longer be entitled to operate a B-Bop's Restaurant on the Franchise Premises or at any other location, nor in any other manner at any location whatsoever utilize all or any portion of the Licensed System (including, but not limited to, the proprietary recipes) or any of the Licensed Marks, provided that termination or expiration of this Agreement shall not affect the right of Franchisee to operate any other B-Bop's Restaurant in accordance with the terms of a franchise agreement between the parties;
- B.
Franchisee shall cease to hold itself out to the public as being a B-Bop's Restaurant and shall avoid any other conduct which would suggest or indicate any relationship between Company and Franchisee, except to the extent permitted by paragraph A above;
- C.
Franchisee shall pay Company or its affiliates on demand all fees and
amounts then owing to Company or its affiliates under the terms of this Agreement and any other amounts owing to Company or its affiliates under any other agreement relating to the Franchise;
- D.
Franchisee shall immediately discontinue all use and display of the Licensed Marks and shall remove from the Franchise Premises any and all signs, emblems, fixtures, furniture, supplies, promotional materials, stationery, printed forms or other materials which display any of the Licensed Marks or feature any of the distinguishing characteristics of the Licensed System;
- E.
Franchisee shall, at its sole expense, immediately make such modifications to the exterior and interior of the Franchise Premises as Company shall reasonably request to effectively distinguish the Franchise Premises from its former appearance and from the appearance of any other B-Bop's Restaurant, including, without limitation, discontinuing use of the unique blue color scheme which is a distinguishing characteristic of the Licensed System.
If Franchisee shall fail to make such modifications in a reasonable period of time, Company or its agents may enter the Franchise Premises, without liability for trespass or other tort or for damages to property of Franchisee, and make such modifications at Franchisee's expense and Franchisee shall reimburse Company on demand for any reasonable expenses incurred in effecting such modifications in accordance with the provisions of Section 26(B) hereof;
- F.
Franchisee shall immediately return to Company all confidential information provided to Franchisee during the Term hereof (including, but not limited to, the Operations Manual) and immediately cease any and all further use of such information for any purpose whatsoever;
- G.
Franchisee shall utilize the Franchise Premises only in a manner consistent with the covenant not to compete contained in Section 17 hereof and otherwise observe the provisions of such Section;
- H.
Franchisee shall assign to Company (or its designee) all telephone numbers issued for the Franchise and any telephone directory listings or yellow page display advertisements associated therewith and shall authorize the telephone company to transfer such numbers, listings and advertisements to Company (or its designee); and
- I.
Termination or expiration of this Agreement shall not release or relieve Franchisee of any obligations hereunder, nor shall such termination or expiration constitute a waiver by Company of any claim against Franchisee with respect to the Franchise or this Agreement.
Company shall be entitled to all rights and remedies available at law or in equity with respect to any claim against Franchisee.
All obligations of Franchisee which expressly or by their nature survive the termination or expiration of this Agreement shall continue in full force and effect subsequent to and notwithstanding termination or expiration hereof.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if a franchisee terminates the agreement outside of the provisions in Section 22, several consequences arise. Upon termination or expiration of the agreement without renewal, the franchisee must cease operating a B Bops restaurant at the franchise premises or any other location and discontinue using the Licensed System and Marks. The franchisee must also stop presenting themselves to the public as a B Bops restaurant, avoiding any conduct suggesting a relationship with the company, except as permitted by the franchise agreement.
Additionally, the franchisee is obligated to pay all outstanding fees and amounts owed to B Bops or its affiliates. They must immediately remove all signs, emblems, and materials displaying the Licensed Marks from the premises and modify the exterior and interior of the franchise premises to differentiate it from a B Bops restaurant, including discontinuing the use of the unique blue color scheme.
Furthermore, the franchisee must return all confidential information, such as the Operations Manual, to B Bops and cease using this information. They must also adhere to the covenant not to compete outlined in Section 17. B Bops is entitled to all legal and equitable rights and remedies regarding any claim against the franchisee, and all obligations that survive termination or expiration remain in effect. If the franchisee fails to make the required modifications to the premises, B Bops may enter the premises and make the modifications at the franchisee's expense.