When is the B Bops development fee due?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon approval of a proposed site, Company shall grant Developer the right and license to own and operate a B-Bop's Restaurant at such site, provided that Developer is in compliance with the terms of this Agreement and the terms of all Unit Franchise Agreements between the parties. Subject to the foregoing, Company shall forward to Developer a Unit Franchise Agreement to be executed with respect to the approved site. The Unit Franchise Agreement shall be the standard form of franchise agreement being utilized by Company to grant franchises at the time of development of each Unit. Developer shall execute the Unit Franchise Agreement in accordance with Company's instructions within twenty (20) days of receipt thereof and return it, together with the initial franchise fee payable for the Unit (as specified in Appendix III), to Company. In the event Developer fails to return the Unit Franchise Agreement and the initial franchise fee to Company within such twenty (20) day period, Company's approval of the site shall be null and void and Developer shall have no rights with respect to such site.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
The 2025 B Bops Franchise Disclosure Document states that when B Bops approves a proposed site, they will forward a Unit Franchise Agreement to the developer. The developer then has twenty days to execute and return the Unit Franchise Agreement, along with the initial franchise fee. If the developer fails to return the agreement and initial franchise fee within the 20-day period, B Bops's site approval becomes void, and the developer loses all rights to that site.
This means a prospective B Bops franchisee needs to be prepared to act quickly once a site is approved. They must have the funds for the initial franchise fee readily available and be prepared to finalize and return the agreement promptly. Failing to do so could result in losing the approved site and the time and effort spent in securing it.
While the excerpt specifies when the initial franchise fee is due, it does not provide specific details regarding the payment schedule or due date for the development fee itself. A prospective franchisee should clarify the exact payment terms and conditions for the development fee with B Bops before signing any agreements.