Is there a cause required to terminate the B Bops Application Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES HERETO ACKNOWLEDGE THAT COMPANY AND APPLICANT EACH HAVE THE RIGHT TO TERMINATE THIS AGREEMENT, WITHOUT CAUSE, AT ANY TIME BY WRITTEN NOTICE TO THE OTHER, IN WHICH CASE, THE DEPOSIT, OR A PORTION THEREOF, SHALL BE RETURNED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 7 HEREOF.
A DECISION BY COMPANY NOT TO GRANT THE RIGHTS TO APPLICANT, WHEN COMMUNICATED TO APPLICANT IN WRITING, SHALL BE DEEMED TO IMMEDIATELY TERMINATE THIS AGREEMENT, WHEREUPON APPLICANT SHALL HAVE NO FURTHER INTEREST IN THE TRADE AREA.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, both B Bops and the applicant have the right to terminate the Application Agreement without providing a specific reason or cause. This termination can occur at any time by giving written notice to the other party. If the agreement is terminated, the deposit, or a portion of it, will be returned to the applicant according to the terms outlined in Section 7 of the agreement.
If B Bops decides not to grant the rights to the applicant, this decision, when communicated in writing, immediately terminates the agreement. In this case, the applicant loses any further interest in the trade area. Upon termination, the applicant must return all confidential information to B Bops, and in return, B Bops will refund the deposit, or a portion thereof, as detailed in Section 7.
Section 7 specifies that if B Bops grants the rights to the applicant, the deposit will be credited towards the initial franchise fee or the development fee, whichever is applicable. However, if B Bops decides not to grant the rights, or if either party terminates the agreement, the applicant is entitled to a refund of the deposit, minus the lesser of $4,500 or the actual expenses incurred by B Bops in providing services, including travel, lodging, out-of-pocket expenses, and a $100 per hour charge for office time spent reviewing or preparing information. B Bops will forward any refund within ten days after the applicant returns all confidential information. Failure to return the confidential information results in forfeiture of the entire deposit.