What is the dependency between owning an existing B Bops restaurant and the initial franchise fee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
al Franchise Fee. In consideration of the Franchise granted hereunder, Franchisee shall pay Company upon execution of this Agreement an initial franchise fee of: (i) Thirty Thousand Dollars ($30,000) if Franchisee does not own an existing B-Bop's Restaurant at the time of entering into this Agreement; or (ii) Twenty-Five Thousand Dollars ($25,000) if Franchisee does own an existing B-Bop's Restaurant at the time of entering into this Agreement. The initial franchise fee shall be fully earned by Company upon payment thereof and shall not be refundable under any circumstances. In the event Franchisee has paid Company any deposit prior to entering into this Agreement, the amount of such deposit shall be applied toward payment of the init
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the initial franchise fee is dependent on whether the franchisee already owns a B Bops restaurant. If the franchisee does not own an existing B Bops restaurant at the time of signing the agreement, the initial franchise fee is $30,000. However, if the franchisee already owns an existing B Bops restaurant when entering into the agreement, the initial franchise fee is reduced to $25,000.
This difference in initial franchise fees provides an incentive for existing B Bops restaurant owners to expand their operations by acquiring additional franchises. The $5,000 reduction in the initial fee can lower the upfront investment required for existing owners. This could be a significant advantage for current franchisees looking to grow within the B Bops system.
The initial franchise fee is fully earned by B Bops upon payment and is non-refundable under any circumstances. If the franchisee has paid a deposit before entering into the agreement, the deposit amount will be applied towards the initial franchise fee. This policy is typical in franchising, as the initial fee compensates the franchisor for the initial costs of granting the franchise and providing initial support and training.