What is the amount of the deposit required from the applicant under the B Bops Application Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Trade Area".
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- Applicant has deposited with Company the sum of $5,000 to cover certain expenses to be incurred by Company in: (i) reviewing Applicant's application for the Rights; (ii) reviewing prospective sites submitted by Applicant for approval; and (iii) providing such additional assistance or information as Company may in its discretion deem appropriate to enable Applicant to determine its interest in providing the Rights. For purposes of this Agreement, the deposit specified above shall be referred to as the "Deposit". Applicant agrees that the Deposit shall not bear interest and that it may be co-mingled with ot
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, an applicant must deposit $5,000 with the company when applying for rights to own and operate a B Bops restaurant. This deposit covers expenses incurred by B Bops for reviewing the application, assessing potential sites, and providing assistance to the applicant. The deposit does not accrue interest and may be combined with other company funds.
This deposit is intended to cover B Bops's costs in evaluating the applicant and potential locations. It is not a guarantee that the applicant will be granted the rights to open a franchise. The FDD states that B Bops has absolute discretion in determining whether to grant the rights, based on factors such as the applicant's background, financial resources, and the suitability of the proposed location.
If B Bops decides not to grant the rights or if either party terminates the agreement, the applicant is entitled to a refund of the deposit, minus the lesser of $4,500 or the actual expenses incurred by B Bops. These expenses include travel, lodging, and a $100 hourly charge for office time spent reviewing the application. Failure to return confidential information to B Bops will result in forfeiture of the entire deposit. This refund policy is a fairly standard practice in the franchise industry, where application fees or deposits are often used to cover the franchisor's initial costs of evaluating a potential franchisee.