Can B Bops terminate the Application Agreement without cause?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| D. Termination by You | Sections 4 and 8 | You may terminate at anytime without cause. Upon termination you will be entitled to the amount of the deposit ($5,000) minus the lesser of (i) $4,500 or (ii) the actual expenses incurred by the Company, as provided in the Application Agreement. If the Company determines to grant you development rights or franchise rights (whichever is applicable) and you do not execute and deliver the appropriate documentation and pay the initial franchise fee or development fee, whichever is applicable, within 15 days after receipt of the documents the Application Agreement shall become |
|---|---|---|
| null and void. | ||
| E. Termination by the Company without cause | Sections 4 and 7 | The Company has the right to terminate the Application Agreement at any time without cause. The Application Agreement also terminates in the event the Company advises you that the development rights or franchise rights, whichever is applicable, will not be granted. Upon termination you will be entitled to a refund equal to the amount of the deposit ($2,500) minus the lesser of (i) $2,000 or (ii) the actual expenses incurred by the Company, as provided in the Application Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops does have the right to terminate the Application Agreement without cause. If B Bops terminates the agreement without cause, the franchisee is entitled to a refund of their deposit, which is $2,500, minus the lesser of $2,000 or the actual expenses B Bops incurred.
This means that while a prospective B Bops franchisee can apply for development or franchise rights, B Bops can choose not to grant these rights and terminate the Application Agreement. In such a case, the franchisee would receive a partial refund of their deposit, with B Bops deducting either a fixed amount of $2,000 or their actual expenses, whichever is lower.
It is important for a potential B Bops franchisee to understand the conditions under which the Application Agreement can be terminated, and what amount they can expect to be refunded if B Bops decides not to grant them development or franchise rights. This clause protects B Bops by allowing them to terminate the agreement without needing a specific reason, while also providing some financial protection to the applicant by refunding a portion of the deposit.