What is the dependency for receiving a refund of the deposit from B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Deposit on Application. To apply for purchase of an initial Franchise, 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 an initial Franchise. Upon submission of the deposit and an Application Agreement, the Company will provide certain services (specified in Item 11 hereof) to assist you in assessing the feasibility of purchasing a Franchise if Company determines that a Franchise should be granted. The Company has absolute discretion in determining whether a Franchise 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 a Franchise (unless such period is extended in the Company's discretion).
In the event the Company decides to grant you a Franchise, the deposit will be applied toward payment of the initial franchise fee. If, on the other hand, the Company determines that a Franchise will not be granted, or if either party terminates the Application Agreement before a decision on granting a Franchise has been made, a portion of the deposit will be refunded to you
once you have returned any confidential information which may have been provided to you by the Company. The refund will be equal to the amount of 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 you 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, the refund of the deposit is contingent upon specific conditions related to the Application Agreement. When applying for a single-unit or multiple-unit franchise, a $5,000 deposit is required along with the Application Agreement. If B Bops decides not to grant franchise rights, or if either party terminates the Application Agreement before a decision is made, a portion of the deposit will be refunded to the applicant.
The key condition for receiving a refund is the return of any confidential information that B Bops may have provided to the applicant. The refund amount will be the initial $5,000 deposit minus the lesser of two amounts: $4,500, or the actual expenses incurred by B Bops. These expenses include travel, lodging, and a $100 hourly fee for office time spent by B Bops in providing services under the Application Agreement.
This refund policy means that a prospective B Bops franchisee may not receive the entire $5,000 deposit back, even if the application is denied or terminated. The amount retained by B Bops can vary based on their actual expenses, but will not exceed $4,500. The Application Agreement can be terminated by either party with written notice, which still entitles the applicant to a refund calculated using the same method. This policy is fairly typical in franchising, as it compensates the franchisor for the time and resources spent evaluating the applicant and providing initial assistance.