If the B Bops agreement is terminated, what is the applicant's right limited to?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Upon termination of this Agreement for any reason whatsoever by either party hereto, or upon Company's determination not to grant the Rights to Applicant, the rights of Applicant shall be limited solely to the return of the Deposit, or a portion thereof, as provided in Section 7 hereof. Applicant hereby waives any and all rights to any damages and/or reimbursement from Company or any affiliate, director, officer, employee or agent thereof for expenses or costs incurred by Applicant in investigating the feasibility of purchasing the Rights. Applicant hereby acknowledges that any such costs or expenses are the sole obligation and responsibility of Applicant and that Company and its affiliates, directors, officers, employees and agents shall have no liability whatsoever with respect to such costs or expenses.
-
- Company's obligation to return the Deposit, or a portion thereof, as required by Section 7 hereof and Applicant's obligation to return all confidential information and to maintain confidentiality with respect thereto as required by Section 5 hereof shall survive the termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if the agreement is terminated by either party or if B Bops decides not to grant the rights to the applicant, the applicant's rights are limited to receiving the return of their deposit, or a portion of it, as outlined in Section 7 of the agreement. The applicant waives any rights to claim damages or reimbursement from B Bops, its affiliates, or its personnel for expenses incurred while investigating the feasibility of purchasing the rights. The document emphasizes that these costs are the applicant's sole responsibility, and B Bops has no liability for them.
This means that a prospective B Bops franchisee needs to be aware that any costs they incur while evaluating the franchise opportunity, such as travel, legal fees, or market research, are non-recoverable if the agreement is terminated or if B Bops decides not to proceed with the franchise. This is a standard practice in franchising, as the franchisor typically does not want to be held liable for the applicant's due diligence expenses.
Furthermore, the obligation of B Bops to return the deposit (or a portion thereof) and the applicant's obligation to return all confidential information and maintain confidentiality survive the termination of the agreement. This ensures that both parties continue to protect sensitive information even after the agreement ends. The applicant should carefully review Section 7 to understand the conditions under which the deposit may be reduced, such as covering actual expenses incurred by B Bops during the application process, which could include travel, lodging, and an hourly charge for office time spent reviewing the application.