Does termination of the B Bops franchise agreement constitute a waiver by the company of any claim against the franchisee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Franchisee shall pay Company or its affiliates on demand all fees and
amounts then owing to Company or its affiliates under the terms of this Agreement and any other amounts owing to Company or its affiliates under any other agreement relating to the Franchise;
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- WAIVERS. Either party may by written notice to the other, unilaterally waive or reduce any obligation of or restriction upon the other party imposed by this Agreement, effective upon delivery of such written notice to such other party. Company makes no warranties upon which Franchisee may rely, and assumes no liability or obligation to Franchisee, by granting any waiver or by reason of any delay in acting on any request for a waiver. Any waiver granted by Company shall be without prejudice to any of the rights Company may have, will be subject to continuing review by Company, and may be revoked, in Company's sole discretion, at any time and for any reason upon delivery of written notice to Franchisee. Company and Franchisee shall not be deemed to have waived or impaired any right, power or option reserved by this Agreement by virtue of any custom or practice of the parties at variance with the terms hereof; by any failure, refusal or neglect of Company or Franchisee to exercise any right under this Agreement or to insist upon exact compliance by the other with its obligations hereunder; by any waiver, forbearance, delay, failure or omission by Company to exercise any right, power or option, whether of the same or of a different nature, with respect to any other franchisee; or through the acceptance by Company of any payments due from Franchisee after any breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, the termination of the franchise agreement does not automatically constitute a waiver by B Bops of any claim against the franchisee. Specifically, paragraph C under section 25, "EVENTS UPON TERMINATION OR EXPIRATION," states that upon termination, the franchisee is obligated to pay B Bops or its affiliates, on demand, all outstanding fees and amounts owed under the agreement, as well as any other amounts owed under any other agreement related to the franchise. This indicates that B Bops retains the right to pursue financial claims against the franchisee even after the termination of the agreement.
Furthermore, section 32, "WAIVERS," clarifies that B Bops can unilaterally waive or reduce any obligation or restriction upon the franchisee by providing written notice. However, the absence of such a written waiver means that all obligations remain in effect. B Bops makes no warranties or assumes any liability by granting any waiver or delaying action on a waiver request. Any waiver granted is subject to continuing review and can be revoked at any time, for any reason, with written notice to the franchisee.
Additionally, the franchise agreement specifies that B Bops will not be deemed to have waived or impaired any right, power, or option reserved by the agreement due to various factors. These include customs or practices varying from the agreement's terms, failure to exercise rights, or acceptance of payments after a breach of the agreement. This clause reinforces that B Bops's rights and claims against the franchisee are preserved unless explicitly waived in writing, even after termination.
In practical terms, this means that a B Bops franchisee cannot assume that termination of the franchise agreement releases them from any outstanding financial or other obligations to B Bops. Franchisees should be aware that B Bops retains the right to pursue claims for unpaid fees, damages, or other liabilities, even after the franchise relationship has ended. It is crucial for franchisees to understand their continuing obligations and to seek written confirmation of any waivers from B Bops to avoid potential legal or financial repercussions.