factual

Is B Bops required to perform a franchisee's obligations if the franchisee fails to do so?

B_Bops Franchise · 2025 FDD

Answer 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.

MULTIPLE-UNIT ARRANGEMENT

If you purchase development rights from the Company, you will be required to establish the number of Franchises prescribed by the Development Agreement and, for each Franchise, to execute the standard form of franchise agreement being used by the Company at the time each Franchise is established.

Source: Item 6 — OTHER FEES (FDD pages 14–18)

What This Means (2025 FDD)

According to B Bops's 2025 Franchise Disclosure Document, B Bops is not required to perform a franchisee's obligations if the franchisee fails to do so, but B Bops has the option to do so. If B Bops elects to perform any of the franchisee's obligations, the franchisee must reimburse B Bops on demand for all amounts paid by B Bops in performing such obligations, plus interest (at a rate disclosed elsewhere in the document) from the date of payment by B Bops.

Situations in which B Bops may be entitled to reimbursement for performing a franchisee's obligations include, but are not limited to: failure to procure insurance coverage for the franchise, failure to maintain the franchise in a clean, safe, and attractive condition, or failure upon termination or expiration of the Franchise Agreement to cease all display of the Licensed Marks or to make modifications to the Franchise premises to effectively distinguish it from a B Bops Restaurant.

In addition to reimbursing B Bops for expenses and interest, if any payment is not received by B Bops on or before its due date, it is deemed past due. The franchisee must pay B Bops a late fee of $200 plus interest at the rate specified in the document on the past due amount from the date it was due until paid in full.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.