What is the definition of a 'multiple-unit arrangement' for B Bops franchises?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
The fee structure imposed by the Company varies depending on whether you are purchasing one Franchise under the single-unit arrangement or the right to develop a number of Franchises under the multiple-unit arrangement.
MULTIPLE-UNIT ARRANGEMENT
Development Fee. If you elect to purchase development rights under the multiple-unit arrangement, you must pay the Company a development fee. The amount of the development fee will vary and will be determined by multiplying $5,000 times the number of Franchises to be developed according to the development schedule. The sum of $5,000 of the development fee will be allocated towards satisfaction of the initial franchise fee payable for each Franchise established under the Development Agreement. If you establish all of the Franchises specified in the development schedule, the entire development fee will be applied towards payment of the initial franchise fees due to the Company. If you fail to comply with the development schedule (or otherwise default under the Development Agreement) and the Development Agreement is terminated, the Company will be entitled to retain that portion of the development fee that has not been applied towards payment of initial franchise fees prior to such termination. The development fee must be paid upon execution of the Development Agreement. You will receive a credit of $5,000 toward payment of such fee from the deposit paid upon execution of the Application Agreement (see below). Except as noted below, the development fee is not refundable in whole or in part under any circumstances.
Source: Item 5 — INITIAL FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a multiple-unit arrangement involves purchasing the rights to develop several franchises, as opposed to a single-unit arrangement where only one franchise is purchased.
The FDD outlines that if a franchisee chooses a multiple-unit arrangement, they must pay a development fee. This fee is calculated by multiplying $5,000 by the number of franchises the franchisee plans to develop, according to a development schedule. A portion of this development fee, specifically $5,000 per franchise, is then credited towards the initial franchise fee required for each B Bops location opened under the development agreement. If the franchisee fulfills the development schedule by opening all specified franchises, the entire development fee is applied to cover the initial franchise fees.
However, if the franchisee fails to meet the development schedule or defaults on the Development Agreement, B Bops retains the portion of the development fee that hasn't yet been applied to initial franchise fees. The development fee is due upon signing the Development Agreement, but the franchisee receives a $5,000 credit from the deposit paid when the Application Agreement was executed. It's important to note that, with limited exceptions, the development fee is generally non-refundable.