If B Bops determines not to grant the rights to the applicant, what is the applicant entitled to?

o negotiate.

• 1. If Company, in its sole discretion, determines to grant the Rights to Applicant, the Deposit shall be credited toward the amount required to be paid by Applicant as the initial

franchise fee or the development fee (whichever shall be applicable). If Company determines that the Rights will not be granted to Applicant, or if either party terminates this Agreement, Applicant shall be entitled to a refund (upon return of all confidential information) equal to the Deposit minus the lesser of: (i) Four Thousand Five Hundred Dollars ($4,500); or (ii) the actual expenses incurred by Company in providing the services identified in Section 2 hereof. For purposes of this Section 7, "actual expenses" shall be deemed to include all travel, lodging and other living expenses reasonably incurred by Company personnel, any other out of pocket expenses incurred by Company hereunder and a one hundred dollar ($100.00) per hour charge for office time spent reviewing information submitted by Applicant or preparing information to be furnished to Applicant. Company shall forward any refund to Applicant within ten (10) days after Applicant has returned all confidential information to Company. Failure to return any confidential information shall result in forfeiture of the entire Deposit and in such other action as Company may in its discretion deem appropriate.

• 1. If Company determines to grant the Rights to Applicant, Company will forward appropriate documentation to Applicant for execution. Failure by Applicant to execute such documentation and to deliver it, together with payment of any initial franchise fee or development fee (whichever shall be applicable), to Company within fifteen (15) days after Applicant's receipt of such documents shall be deemed an election by Applicant not to purchase the Rights and to terminate this Agreement, at which time Company's grant of the Rights shall become null and void and Applicant shall have no further interest with respect to the Trade Area.
• 1. The parties hereto acknowledge that this Agreement does not constitute an offer of the Rights by Company, nor a commitment by Company to grant the Rights to Applicant. Applicant acknowledges that neither Company, nor anyone acting on behalf of Company, has made any representations, inducements, promises or agreements, orally or in writing, regarding the subject matter of this Agreement which are not contained herein. Applicant further acknowledges that no statements or representations regarding revenues, profits or success of the business have been made to Applicant by Company or anyone acting on behalf of Company.
• 1. This Agreement may not be assigned by Applicant, whether by voluntary transfer or by operation of law, and any purported assignment hereof shall result in the automatic termination hereof.
• 1. Applicant acknowledges that Applicant has received the Franchise Offering Circular (with various exhibits thereto) describing the Rights and that Applicant has executed an Acknowledgement of Receipt and delivered the same to Company.

Source: Item 23 — RECEIPTS (FDD pages 53–145)