If B Bops performs obligations on behalf of the franchisee, what is the reimbursement process?
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.
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 to step in and fulfill those obligations on the franchisee's behalf, but is not required to do so. B Bops will provide reasonable prior notice before taking such action.
Should B Bops elect to perform these obligations, the franchisee is responsible for reimbursing B Bops for all expenses incurred. This reimbursement is due on demand. In addition to covering the costs, any payment not received by B Bops on or before its due date is considered past due, and the franchisee must also pay a late fee of $200, plus interest. The interest rate is 1.5% per month (or the maximum rate allowed by state law) on the past due amount, calculated from the original due date until the payment is made in full.
Examples of situations where B Bops might perform a franchisee's obligations include failure to maintain adequate insurance, neglecting to keep the franchise location clean and attractive, or not removing B Bops's branding after the franchise agreement terminates. This policy ensures that B Bops can maintain brand standards and operational compliance, while holding franchisees accountable for their contractual duties.