Can B Bops extend the period for informing the applicant about the Rights decision?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops has the discretion to extend the period for informing an applicant whether they will be granted the Rights. Specifically, B Bops agrees to inform the applicant in writing within ninety (90) days of the agreement's effective date whether the Rights will be granted. However, this 90-day period may be extended at B Bops's discretion.
This clause provides B Bops with flexibility in its decision-making process. It allows B Bops more time to evaluate the applicant's qualifications, assess potential locations, and consider other relevant factors before making a final determination. For a prospective franchisee, this means the decision timeline could be longer than the initial 90-day period, and they should be prepared for potential delays.
While the FDD states that B Bops has absolute discretion in determining whether to grant the Rights, the decision depends on factors such as the applicant's character, business background, financial resources, the location of the premises, and the ability to secure necessary permits and licenses. The applicant is expected to use their best efforts to arrange financing, select proposed sites, and take necessary actions to be in a position to purchase the Rights if granted. This places the onus on the applicant to actively pursue these steps while awaiting B Bops's decision, even as the decision timeline remains open-ended.