What agreement must be executed to trigger the credit towards the B Bops development fee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Deposit on Application. To apply for purchase of development rights, you must sign and submit an Application Agreement to the Company, accompanied by a deposit of $5,000. The amount of the deposit is uniform as to all persons currently applying to purchase development rights from the Company. Upon submission of the deposit and Application Agreement, the Company will provide certain services (specified in Item 11 hereof) to assist you in assessing the feasibility of purchasing the development rights if Company determines that such rights should be granted. The Company has absolute discretion in determining whether the development rights will be granted. You will be notified by the Company in writing within ninety (90) days of submitting the Application Agreement regarding its decision to grant the development rights (unless such period is extended in the Company's discretion).
In the event the Company decides to grant you the development rights, the deposit will be applied toward payment of the development fee. If, on the other hand, the Company determines not to grant such rights, or if the Application Agreement is terminated by either party before a decision on granting the developments rights has been made, a portion of the deposit will be refunded upon return of any confidential information which may have been provided to you by the Company. The refund will be equal to the amount of the deposit minus the lesser of: (i) $4,500; or (ii) the actual expenses (including travel and lodging expenses and a $100 hourly fee for office time) incurred by the Company in providing the services required under the Application Agreement. The Application Agreement may be terminated by either party at any time by written notice to the other, in which event the applicant will be entitled to a refund of the deposit calculated in accordance with the method described above.
Source: Item 5 — INITIAL FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, to receive a $5,000 credit toward the development fee, a prospective franchisee must first sign and submit an Application Agreement accompanied by a $5,000 deposit. This deposit is required when applying for the purchase of development rights under a multiple-unit arrangement. Once the Application Agreement is submitted with the deposit, B Bops will evaluate the application and determine whether to grant the development rights. If B Bops approves the application, the $5,000 deposit will then be credited toward the development fee.
This initial step is crucial for those seeking to develop multiple B Bops franchises, as it sets the stage for the Development Agreement. The Application Agreement allows B Bops to assess the applicant's suitability and the feasibility of the proposed development. It also provides the applicant with an opportunity to receive assistance from B Bops in evaluating the potential of the development rights.
It's important to note that the Application Agreement does not guarantee the granting of development rights. B Bops retains absolute discretion in making this decision. If the development rights are not granted, or if the Application Agreement is terminated by either party before a decision is made, a portion of the $5,000 deposit will be refunded, less certain expenses incurred by B Bops. This refund is calculated by subtracting the lesser of $4,500 or the actual expenses incurred by B Bops (including travel, lodging, and a $100 hourly fee for office time) from the initial $5,000 deposit, provided any confidential information is returned to B Bops.
Therefore, the execution of the Application Agreement and the payment of the $5,000 deposit are the initial steps required to potentially receive the credit towards the development fee for a multiple-unit B Bops franchise arrangement. Prospective franchisees should carefully consider the terms of the Application Agreement and the potential for expenses to be deducted from the deposit if the development rights are not granted or the agreement is terminated.