Is the B Bops development fee refundable?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If Company, in its sole discretion, determines to grant the Rights to Applicant, the Deposit shall be credited toward the amount required to be paid by Applicant as the initial
franchise fee or the development fee (whichever shall be applicable). If Company determines that the Rights will not be granted to Applicant, or if either party terminates this Agreement, Applicant shall be entitled to a refund (upon return of all confidential information) equal to the Deposit minus the lesser of: (i) Four Thousand Five Hundred Dollars ($4,500); or (ii) the actual expenses incurred by Company in providing the services identified in Section 2 hereof. For purposes of this Section 7, "actual expenses" shall be deemed to include all travel, lodging and other living expenses reasonably incurred by Company personnel, any other out of pocket expenses incurred by Company hereunder and a one hundred dollar ($100.00) per hour charge for office time spent reviewing information submitted by Applicant or preparing information to be furnished to Applicant. Company shall forward any refund to Applicant within ten (10) days after Applicant has returned all confidential information to Company. Failure to return any confidential information shall result in forfeiture of the entire Deposit and in such other action as Company may in its discretion
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a deposit is potentially refundable under specific conditions. If B Bops decides not to grant the rights to an applicant, or if either the applicant or B Bops terminates the agreement, the applicant is entitled to a refund of the deposit. However, this refund is subject to deductions. B Bops will deduct the lesser of $4,500 or the actual expenses incurred while providing services as outlined in Section 2 of the agreement. These actual expenses include travel, lodging, living expenses of B Bops personnel, out-of-pocket expenses, and a charge of $100 per hour for office time spent reviewing or preparing information for the applicant.
The refund process is contingent upon the applicant returning all confidential information to B Bops. Failure to do so results in forfeiture of the entire deposit and may lead to further action deemed appropriate by B Bops. If all confidential information is returned, B Bops is obligated to forward any refund to the applicant within ten days.
This refund policy is important for potential B Bops developers to understand, as it outlines the circumstances under which they may recoup their deposit, as well as the potential deductions and conditions that apply. Franchisees should carefully review Section 2 of the agreement to fully understand what services and expenses could be deducted from their deposit if the agreement is terminated.