What is the amount of the application deposit required when submitting the Application Agreement for a B Bops franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Application deposit1 | $5,000 | Lump sum | Upon submission of Application Agreement | Company |
| Initial franchise fee1 | $30,000 for first Franchise purchased; $20,000 for each additional Franchise | Lump sum | Upon execution of the Franchise Agreement; $2,500 credit allowed for deposit paid under Application Agreement | Company |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a prospective franchisee must submit an application deposit of $5,000 when submitting the Application Agreement. This deposit is paid as a lump sum to the company.
Notably, this application deposit can be credited towards the initial franchise fee. The FDD states that a $2,500 credit is allowed for the deposit paid under the Application Agreement. This means that of the $5,000 application deposit, only $2,500 is credited towards the initial franchise fee.
This deposit is part of the initial investment required to start a B Bops franchise. The initial franchise fee is $30,000 for the first franchise purchased and $20,000 for each additional franchise. Understanding the application deposit and how it applies to the initial franchise fee is an important aspect of assessing the overall financial commitment.