Under what circumstances can a B Bops franchisee terminate the Application Agreement?
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. |
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, a franchisee can terminate the Application Agreement at any time without providing a specific reason. Upon termination, the franchisee is entitled to a refund of their deposit ($5,000), but this refund will be reduced by either $4,500 or the actual expenses B Bops incurred, whichever amount is less.
However, if B Bops decides to grant the franchisee development or franchise rights, the franchisee must then execute and deliver the required documents and pay the initial franchise fee or development fee within 15 days of receiving the documents. Failure to do so will result in the Application Agreement becoming null and void.
It is important to note that the Application Agreement cannot be transferred or assigned by the franchisee. This means that if a franchisee wishes to exit the agreement, they cannot simply pass it on to another party. They must terminate the agreement and accept the associated financial implications. Prospective franchisees should carefully consider these termination terms and ensure they fully understand the potential costs before entering into an Application Agreement with B Bops.