Under what conditions related to franchisee's financial status or legal proceedings can the B Bops franchise agreement be terminated?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
owing conditions:
- A. Without Advance Notice and Cure. Company may terminate this Agreement without giving advance notice and without providing an opportunity to cure upon the
occurrence of any of the following events:
- (1) Any assignment made for the benefit of Franchisee's creditors, any appointment of a receiver, trustee or similar officer for Franchisee or its assets, the commencement of bankruptcy or other insolvency proceedings by or against Franchisee, or if Franchisee is a partnership, corporation or limited liability company, any of the foregoing occur with respect to any partner, shareholder or member of Franchisee who owns a controlling interest in Franchisee or who has any responsibility for management of Franchisee;
- (2) Conviction or a plea of guilty or no contest by Franchisee or any partner, shareholder or member thereof to any felony or to any crime relating to operation of the Franchise;
- (3) Any purported assignment or transfer of this Agreement, the Franchise or an ownership interest in Franchisee other than in accordance with the provisions of Section 19 hereof;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchise agreement can be terminated without advance notice or an opportunity to cure under specific financial and legal circumstances. These circumstances include any assignment made for the benefit of the franchisee's creditors, the appointment of a receiver, trustee, or similar officer for the franchisee or its assets, or the commencement of bankruptcy or other insolvency proceedings by or against the franchisee. If the franchisee is a partnership, corporation, or limited liability company, these conditions also apply if they occur with respect to any partner, shareholder, or member who owns a controlling interest or has management responsibility.
Additionally, B Bops can terminate the agreement without advance notice if the franchisee or any partner, shareholder, or member is convicted of or pleads guilty or no contest to any felony or any crime related to the operation of the franchise. The agreement can also be terminated if the franchisee submits a materially false financial report to B Bops or makes an intentional misrepresentation in connection with obtaining the agreement or operating the franchise.
These termination conditions are fairly standard in franchising, as franchisors need to protect their brand and system from franchisees who become financially unstable or engage in illegal activities. Prospective B Bops franchisees should carefully consider these terms and ensure they have a solid financial plan and a clean legal record to avoid potential termination of their franchise agreement.