What happens if a B Bops franchisee fails to pay accounts payable?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall promptly pay when due all accounts payable and other invoices or obligations of whatever nature incurred by Franchisee in operation of the Franchise, whether such payments are to be made to Company or to third parties.
If Franchisee fails to perform any covenant or obligation required to be performed by Franchisee under this Agreement, Company shall be entitled, but shall not be required, to perform the same on behalf of and at the expense of Franchisee, upon giving reasonable prior notice to Franchisee of its intention to do so.
If Company at any time is compelled to pay, or elects to pay, any sum of money by reason of the failure of Franchisee to comply with any provisions of this Agreement, the amounts so paid by Company shall be due from Franchisee to Company on demand, together with interest at the rate of one and one-half percent (1-1/2%) per month, or the maximum allowed by the law of the state in which the Franchise is located, whichever is less, from the respective date of each such payment until repayment in full.
If Company or any affiliate thereof is required to institute any legal or arbitration proceeding to collect any amounts owing from Franchisee or to enforce the terms of this Agreement and if Company or such affiliate prevails in such proceeding, Company or such affiliate shall be entitled to reimbursement from Franchisee of its costs and expenses incurred in connection therewith, including attorneys' or accountants' fees, court costs and costs of investigation.
Franchisee agrees that in the event of an anticipatory, threatened or actual breach of any of the covenants, agreements, terms or conditions of this Agreement by Franchisee, Company, in addition to any other remedy available hereunder or by law, shall be entitled forthwith to apply for and receive from any court of competent jurisdiction equitable relief by way of restraining order, injunction or otherwise, to prevent a breach of the terms of this Agreement, or by way of specific performance to enforce performance of the terms of this Agreement, plus reimbursement for costs, including attorneys' fees, incurred in the securing of such relief.
In consideration of the Franchise granted to Franchisee hereunder and in order to induce Company to grant such Franchise to Franchisee, each of the undersigned hereby agrees, jointly, individually and severally, for themselves, their heirs, legal representatives and assigns as follows: (a) that they, and each of them, shall be personally bound by and agree to perform all of the terms, provisions and conditions of this Agreement; (b) that they, and each of them, do hereby personally and unconditionally guarantee full and prompt payment to Company or its affiliates of any indebtedness of Franchisee arising under or by virtue of this Agreement or any other agreement between the parties relating to the Franchise granted under this Agreement
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees are obligated to promptly pay all accounts payable and other invoices when they are due. This includes payments to B Bops itself or to any third parties incurred during the operation of the franchise.
If a B Bops franchisee fails to meet any obligation required under the franchise agreement, B Bops has the right, but not the obligation, to perform those obligations on behalf of the franchisee, provided they give reasonable notice. If B Bops pays any sum of money due to the franchisee's failure to comply with the agreement, the franchisee must pay that amount to B Bops on demand. This amount will also include interest at a rate of one and one-half percent (1-1/2%) per month, or the maximum rate allowed by the law of the state in which the franchise is located, whichever is less. The interest accrues from the date B Bops made the payment until the franchisee repays the full amount.
Furthermore, if B Bops has to initiate legal or arbitration proceedings to collect any amounts owed by the franchisee or to enforce the terms of the agreement, and B Bops prevails, the franchisee is responsible for reimbursing B Bops for all costs and expenses incurred. These costs include attorneys' or accountants' fees, court costs, and costs of investigation. In addition to these remedies, B Bops is entitled to seek injunctive relief from a court of competent jurisdiction in the event of a breach of the franchise agreement.
Additionally, the franchisee's partners, shareholders, or members are bound by a personal guarantee to ensure full and prompt payment to B Bops or its affiliates for any debts arising from the Franchise Agreement. This guarantee means that these individuals are personally liable for the franchisee's financial obligations, including accounts payable, and could be pursued for these debts if the franchisee fails to pay.