Are there any exceptions to B Bops' right to terminate the Application Agreement without cause?
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' 2025 Franchise Disclosure Document, both B Bops and the applicant have the right to terminate the Application Agreement without cause. The FDD states that either party can terminate the agreement by providing written notice to the other party.
However, there are specific conditions and implications associated with such termination. If B Bops decides not to grant the rights to the applicant, this decision, when communicated in writing, immediately terminates the agreement. Upon termination, the applicant's rights are limited to the return of the deposit, or a portion thereof, as outlined in Section 7 of the agreement. The applicant waives any rights to damages or reimbursement for expenses incurred while investigating the franchise opportunity.
The obligation to return the deposit (or a portion of it) and the applicant's duty to maintain confidentiality survive the termination of the agreement. If B Bops terminates the agreement, they are entitled to negotiate with other parties regarding the potential purchase of a B Bops Restaurant in the trade area. This clause ensures that B Bops retains the flexibility to pursue other opportunities even after an application agreement is terminated.