Under what condition are attorney's fees and costs payable by a B Bops franchisee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Relocation fee | $2,000 | Upon approval of a new location by the Company. | The relocation fee must be paid only if the Franchise must be moved to a new location during the term of the Franchise Agreement as a result of the termination of a lease, the destruction of the premises by fire or other casualty or the commencement of eminent domain |
|---|---|---|---|
| Indemnification | Will vary. | As incurred. | proceedings. |
| You must reimburse the | |||
| Company (or its | |||
| affiliates) if the | |||
| Company (or its | |||
| affiliates) are sued or | |||
| held liable for any claim | |||
| resulting from operation | |||
| of your Franchise or, if | |||
| applicable, the exercise | |||
| of your development | |||
| rights. | |||
| Additional training | Up to $2,000. | Prior to training course. | The additional training |
| fee is only payable if | |||
| you or your manager | |||
| elect to receive | |||
| additional training. See | |||
| Item 11 of this | |||
| disclosure document for | |||
| details. | |||
| Special operating assistance | As agreed by you and the Company. | As incurred. | The Company will provide two support trips per year to the Franchise premises. Additional support requested by you will be at your expense. The expenses for additional support trips will typically include the travel, lodging, meals and a per diem charge for the services being rendered. |
| Attorneys fees and costs | Will vary. | As incurred. | Attorneys fees and costs are payable by you if the Company prevails in a litigation or arbitration proceeding against you to collect amounts owing by you or to otherwise enforce the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a franchisee may be required to pay attorney's fees and costs under specific circumstances. If B Bops prevails in a litigation or arbitration proceeding against the franchisee, either to collect amounts owed or to enforce the Franchise Agreement, the franchisee is responsible for covering B Bops's attorney's fees and costs. The exact amount will vary and is incurred as the costs arise.
This means that if a B Bops franchisee breaches the Franchise Agreement or fails to make required payments, and B Bops takes legal action to enforce the agreement or recover the owed amounts, the franchisee could be liable for B Bops's legal expenses in addition to the original debt or damages. This provision is relatively standard in franchise agreements, as it aims to protect the franchisor from incurring legal costs when enforcing the terms of the agreement against a non-compliant franchisee.
Prospective B Bops franchisees should carefully review the Franchise Agreement to understand the specific circumstances that could lead to litigation or arbitration. Understanding these potential liabilities is crucial for managing the financial risks associated with operating a B Bops franchise. It is also advisable to maintain open communication with B Bops to resolve any disputes amicably and avoid costly legal battles.