What survives the termination of the B Bops agreement regarding the deposit?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Company's obligation to return the Deposit, or a portion thereof, as required by Section 7 hereof and Applicant's obligation to return all confidential information and to maintain confidentiality with respect thereto as required by Section 5 hereof shall survive the termination of this Agreement.
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.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the obligation to return the deposit, or a portion of it, as outlined in Section 7, survives the termination of the agreement. Additionally, the applicant's obligation to return all confidential information and maintain confidentiality also remains in effect after termination.
Specifically, if B Bops determines not to grant the rights to the applicant, or if either party terminates the agreement, the applicant is entitled to a refund of the deposit. However, this refund is subject to deductions, namely the lesser of $4,500 or the actual expenses incurred by B Bops for services detailed in Section 2. These actual expenses include travel, lodging, living expenses of B Bops personnel, out-of-pocket expenses, and a $100 per hour charge for office time spent reviewing or preparing information for the applicant.
To receive the refund, the applicant must return all confidential information to B Bops. Failure to do so results in the forfeiture of the entire deposit and may lead to further action by B Bops. The refund will be forwarded to the applicant within ten days after the confidential information is returned. This ensures that B Bops is compensated for its expenses and that its confidential information is protected, even if the agreement is terminated.