When is the development fee due for a B Bops multiple-unit arrangement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Fee. If you elect to purchase development rights under the multiple-unit arrangement, you must pay the Company a development fee. The amount of the development fee will vary and will be determined by multiplying $5,000 times the number of Franchises to be developed according to the development schedule. The sum of $5,000 of the development fee will be allocated towards satisfaction of the initial franchise fee payable for each Franchise established under the Development Agreement. If you establish all of the Franchises specified in the development schedule, the entire development fee will be applied towards payment of the initial franchise fees due to the Company. If you fail to comply with the development schedule (or otherwise default under the Development Agreement) and the Development Agreement is terminated, the Company will be entitled to retain that portion of the development fee that has not been applied towards payment of initial franchise fees prior to such termination. The development fee must be paid upon execution of the Development Agreement. You will receive a credit of $5,000 toward payment of such fee from the deposit paid upon execution of the Application Agreement (see below). Except as noted below, the development fee is not refundable in whole or in part under any circumstances.
Source: Item 5 — INITIAL FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if a franchisee elects to purchase development rights under a multiple-unit arrangement, they must pay a development fee to B Bops. The development fee is determined by multiplying $5,000 by the number of franchises to be developed according to the development schedule.
The FDD specifies that the development fee must be paid upon execution of the Development Agreement. A portion of this fee, specifically $5,000, will be credited towards the initial franchise fee for each franchise established under the Development Agreement. If the franchisee fulfills the development schedule, the entire development fee will be applied towards the initial franchise fees due to B Bops.
However, if the franchisee fails to comply with the development schedule or defaults under the Development Agreement, and the agreement is terminated, B Bops is entitled to retain the portion of the development fee that has not been applied towards payment of initial franchise fees prior to termination. The FDD also notes that the franchisee will receive a $5,000 credit toward the development fee from the deposit paid upon execution of the Application Agreement. The development fee is generally non-refundable.