If a B Bops franchisee fails to pay fees, what action can the company take?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
after giving Franchisee written notice specifying any of the following events of default if such default has not been cured to the satisfaction of Company within the period specified below:
- (1) Franchisee fails to pay when due any fee or other payment required to be made to Company or its affiliates under the provisions of this Agreement or under the provisions of any other agreement between the parties relating to the Franchise, and such default is not cured within ten (10) days of the date on which notice is given by Company; or
REMEDIES.
In addition to the right to terminate this Agreement, Company shall be
entitled to exercise the following remedies:
- A.
Injunctive Relief.
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.
- B.
Nonperformance by Franchisee.
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.
- C.
Costs and Attorney's Fees.
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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if a franchisee fails to pay fees, B Bops can take certain actions. Specifically, B Bops will provide written notice to the franchisee specifying the default. If the franchisee does not cure the default to B Bops's satisfaction within ten days of the notice date, it will be considered an event of default.
In addition to the right to terminate the agreement, B Bops is entitled to exercise other remedies. B Bops can seek injunctive relief from a court of competent jurisdiction in the event of a breach of the agreement, including specific performance to enforce the terms, and receive reimbursement for costs, including attorney's fees, incurred in securing such relief.
Furthermore, if the franchisee fails to perform any obligation under the agreement, B Bops is entitled, but not required, to perform the obligation on behalf of the franchisee at the franchisee's expense, after giving reasonable prior notice. Any amounts paid by B Bops due to the franchisee's failure to comply with the agreement are due from the franchisee to B Bops on demand, along with interest at a rate of one and one-half percent (1-1/2%) per month, or the maximum allowed by law in the state where the franchise is located, whichever is less, from the date of payment until full repayment.
If B Bops has to start any legal or arbitration proceeding to collect amounts owed from the franchisee or to enforce the terms of the agreement, and B Bops wins, the franchisee has to reimburse B Bops for all costs and expenses related to the proceeding. This includes attorney's fees, accountant's fees, court costs, and investigation costs. These remedies provide B Bops with several options to address a franchisee's failure to pay fees, ranging from demanding payment with interest to taking over the franchisee's obligations and seeking legal recourse.