What are a B Bops franchisee's obligations upon termination of the Application Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| D. Termination by You | Sections 4 and 8 | You may terminate at anytime without cause. Upon termination you will be entitled to the amount of the deposit ($5,000) minus the lesser of (i) $4,500 or (ii) the actual expenses incurred by the Company, as provided in the Application Agreement. If the Company determines to grant you development rights or franchise rights (whichever is applicable) and you do not execute and deliver the appropriate documentation and pay the initial franchise fee or development fee, whichever is applicable, within 15 days after receipt of the documents the Application Agreement shall become |
|---|---|---|
| null and void. | ||
| E. Termination by the Company without cause | Sections 4 and 7 | The Company has the right to terminate the Application Agreement at any time without cause. The Application Agreement also terminates in the event the Company advises you that the development rights or franchise rights, whichever is applicable, will not be granted. Upon termination you will be entitled to a refund equal to the amount of the deposit ($2,500) minus the lesser of (i) $2,000 or (ii) the actual expenses incurred by the Company, as provided in the Application Agreement. |
| F. Termination by the | None | Not Applicable. |
| Company with cause | ||
| G. "Cause" defined-curable | None | Not Applicable. |
| H. "Cause" defined-non-curable | None | Not Applicable |
| I. Your obligations Termination/nonrenewal | Section 5 | Upon termination you must return to the Company all confidential information and refrain from any further use of confidential information. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if the Application Agreement is terminated, the franchisee must return to B Bops all confidential information and cease any further use of this confidential information. This obligation is detailed in Section 5 of the Application Agreement.
This requirement is standard in franchising to protect the franchisor's proprietary information, trade secrets, and operational methods. By returning and not using confidential information, the franchisee prevents unfair competition and ensures that B Bops's business model remains protected.
Prospective B Bops franchisees should carefully review the definition of "confidential information" in the Application Agreement to fully understand the scope of this obligation. They should also be aware of any potential penalties or legal ramifications for failing to comply with this requirement after termination.