Where is the B Bops development fee amount specified?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- DEVELOPMENT FEE. In consideration of the development rights granted by Company hereunder, Developer agrees to pay Company by certified or cashier's check the development fee specified in Appendix III attached hereto upon execution of this Agreement. Such fee shall be deemed fully earned upon execution of this Agreement and shall not be refundable to Developer under any circumstances. Any deposit paid by Developer prior to execution of this Agreement shall be applied toward satisfaction of the development fee. A portion of such development fee, to be specified in Appendix III attached hereto, shall be applied by Company toward the initial franchise fee payable under the Unit Franchise Agreement executed for each Unit developed by Developer pursuant to this Agreement. Company and Developer acknowledge and agree that the payment terms imposed by this Agreement with respect to the development fee and the initial franchise fee payable for Units developed pursuant hereto are in lieu of and supersede the terms of any Unit Franchise Agreement relating to the amount and time of payment of the initial f
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the development fee amount is specified in Appendix III. The document states that the developer must pay the development fee specified in Appendix III upon execution of the agreement. This fee is considered fully earned and non-refundable once the agreement is executed. Any deposit paid before the agreement may be applied towards the development fee.
Furthermore, a portion of the development fee, also detailed in Appendix III, will be applied towards the initial franchise fee required under the Unit Franchise Agreement for each B Bops unit the developer builds. The FDD clarifies that the payment terms outlined in the agreement regarding the development fee and the initial franchise fee supersede any conflicting terms in the Unit Franchise Agreement about the amount and timing of the initial franchise fee payment.
For a prospective B Bops developer, it is crucial to carefully review Appendix III to understand the exact amount of the development fee, the portion that can be credited towards the initial franchise fee for each unit, and the payment terms. Understanding these financial obligations is essential before signing the Multiple-Unit Development Agreement, as the fee is non-refundable.