Under what circumstances will B Bops 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. 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, the company has the right to terminate the Application Agreement under specific circumstances. B Bops can terminate the agreement at any time without cause. Additionally, the Application Agreement will terminate if B Bops advises the applicant that development rights or franchise rights will not be granted. Upon such termination, the applicant is entitled to a refund of their deposit ($2,500), minus the lesser of $2,000 or the actual expenses incurred by B Bops, as detailed in the Application Agreement.
Furthermore, the Application Agreement can become null and void if B Bops decides to grant development or franchise rights, and the applicant fails to execute and deliver the necessary documentation and pay the initial franchise fee or development fee within 15 days of receiving the documents.
These termination conditions outlined in the FDD are important for potential franchisees to consider. Understanding the circumstances under which the Application Agreement can be terminated, and the associated financial implications, is crucial for making an informed investment decision. It is also important to note the distinction between termination of the Application Agreement versus the Development Agreement, as the latter has different termination conditions.