Does the B Bops indemnification extend to the Company's directors?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, the indemnification extends to the company's directors. Specifically, if an applicant is investigating the feasibility of purchasing rights to develop a B Bops restaurant and the company decides not to grant those rights, the applicant waives any right to damages or reimbursement from B Bops, its affiliates, directors, officers, employees, or agents for any expenses incurred during the investigation.
This means that prospective B Bops franchisees bear the full financial risk of their due diligence efforts. If the deal falls through, they cannot seek compensation from B Bops or its leadership for costs like travel, legal fees, or market research. This is a standard practice in franchising, as the franchisor wants to avoid liability for decisions made independently by the franchisee during their evaluation process.
This clause protects B Bops and its directors from potential lawsuits or claims related to an applicant's expenses if the franchise agreement is not finalized. It clarifies that incurring these costs is solely the applicant's responsibility. Therefore, applicants should carefully consider their budget for investigating the franchise opportunity and understand that these expenses are non-recoverable if they or B Bops decide not to move forward with the agreement.