What happens if a B Bops franchisee fails to perform their obligations?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to perform any of your obligations imposed by the Franchise Agreement, the Company may (but shall not be required to) perform such obligations on your behalf and at your expense, after giving you reasonable prior notice of its intention to do so. If the Company elects to perform any of your obligations, you must reimburse the Company on demand for all amounts paid by the Company in performing such obligations, plus
interest (at the rate disclosed above) from the date of payment by the Company. Situations in which the Company is entitled to reimbursement for the performance of your obligations include, without limitation: (a) your failure to procure insurance coverage for the Franchise; (b) your failure to maintain the Franchise in a clean, safe and attractive condition; or (c) your failure upon termination or expiration of the Franchise Agreement to cease all display of the Licensed Marks or to make such modifications and alterations to the Franchise premises as may reasonably be necessary to effectively distinguish the Franchise premises from the appearance of a B-Bop's Restaurant.
MULTIPLE-UNIT ARRANGEMENT
If you purchase development rights from the Company, you will be required to establish the number of Franchises prescribed by the Development Agreement and, for each Franchise, to execute the standard form of franchise agreement being used by the Company at the time each Franchise is established. On each occasion that you execute the standard franchise agreement for the establishment of a Franchise, you will be required by such agreement to pay a variety of fees and amounts to the Company. The fees and payments imposed under the current Franchise Agreement are described in the table set forth above. You should understand, however, that the standard form of franchise agreement utilized by the Company in the future may impose fees and payments that materially differ in amount and nature from those described above.
7. ESTIMATED INITIAL INVESTMENT
SINGLE UNIT ARRANGEMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Application deposit1 | $5,000 | Lump sum | Upon submission of Application Agreement | Company |
| Initial franchise fee1 | $30,000 for first Franchise purchased; $20,000 for each additional Franchise | Lump sum | Upon execution of the Franchise Agreement; |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if a franchisee fails to meet their obligations under the Franchise Agreement, B Bops has the option, but not the requirement, to step in and perform those obligations on the franchisee's behalf. However, B Bops will provide reasonable prior notice before doing so.
If B Bops chooses to perform any of the franchisee's obligations, the franchisee is responsible for reimbursing B Bops for all expenses incurred. This reimbursement is due on demand and includes interest. The interest rate is 1.5% per month (or the maximum rate permitted by applicable state law).
Examples of situations where B Bops might step in include failure to maintain adequate insurance coverage, failure to keep the franchise location clean and attractive, or failure to remove B Bops branding after termination or expiration of the franchise agreement. Additionally, if B Bops has to take legal action against a franchisee to collect owed amounts or enforce the Franchise Agreement, the franchisee will be responsible for attorney's fees and costs if B Bops prevails.