Can the B Bops deposit be co-mingled with other company funds?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
the "Trade Area".
-
- 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, the initial deposit of $5,000 can be co-mingled with other B Bops funds. This deposit is made by the applicant to cover expenses incurred by B Bops while reviewing the application, prospective sites, and providing additional assistance.
Co-mingling funds means that B Bops is not required to keep the deposit in a separate, dedicated account. This is a common practice, but it's important for the franchisee to understand that the deposit is not necessarily protected in a segregated account. If B Bops were to face financial difficulties, the deposit could be at risk along with the company's other assets.
While the deposit does not bear interest, the applicant is entitled to a refund of the deposit, or a portion thereof, if B Bops does not grant the rights to the applicant or if either party terminates the agreement. The refund will be the deposit amount minus the lesser of $4,500 or the actual expenses incurred by B Bops in providing services. These expenses include travel, lodging, out-of-pocket expenses, and a $100 per hour charge for office time spent reviewing or preparing information for the applicant.