Does B Bops have discretion in determining whether development rights will be granted?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Deposit on Application. To apply for purchase of development rights, you must sign and submit an Application Agreement to the Company, accompanied by a deposit of $5,000. The amount of the deposit is uniform as to all persons currently applying to purchase development rights from the Company. Upon submission of the deposit and Application Agreement, the Company will provide certain services (specified in Item 11 hereof) to assist you in assessing the feasibility of purchasing the development rights if Company determines that such rights should be granted. The Company has absolute discretion in determining whether the development rights will be granted. You will be notified by the Company in writing within ninety (90) days of submitting the Application Agreement regarding its decision to grant the development rights (unless such period is extended in the Company's discretion).
In the event the Company decides to grant you the development rights, the deposit will be applied toward payment of the development fee. If, on the other hand, the Company determines not to grant such rights, or if the Application Agreement is terminated by either party before a decision on granting the developments rights has been made, a portion of the deposit will be refunded upon return of any confidential information which may have been provided to you by the Company. The refund will be equal to the amount of the deposit minus the lesser of: (i) $4,500; or (ii) the actual expenses (including travel and lodging expenses and a $100 hourly fee for office time) incurred by the Company in providing the services required under the Application Agreement. The Application Agreement may be terminated by either party at any time by written notice to the other, in which event the applicant will be entitled to a refund of the deposit calculated in accordance with the method described above.
Source: Item 5 — INITIAL FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops retains absolute discretion in deciding whether to grant development rights to prospective franchisees. To apply for these rights, a candidate must submit an Application Agreement along with a $5,000 deposit. B Bops will then evaluate the feasibility of granting these rights. The applicant will be notified in writing of B Bops's decision within 90 days of submitting the application, although B Bops can extend this period at its discretion.
If B Bops grants the development rights, the $5,000 deposit will be applied toward the development fee. However, if B Bops denies the application, or if either party terminates the Application Agreement before a decision is made, a portion of the deposit will be refunded, covering the deposit amount minus the lesser of $4,500 or the actual expenses incurred by B Bops. These expenses include travel, lodging, and a $100 hourly fee for office time spent by B Bops in providing services under the Application Agreement.
This discretion gives B Bops significant control over who can expand the brand through multiple units. For a potential franchisee, this means that even after investing time and money into the application process, there is no guarantee that development rights will be granted. The franchisee bears the risk of losing a portion of the $5,000 deposit to cover B Bops's expenses, regardless of the outcome. This is a fairly standard practice in franchising, where franchisors carefully vet potential developers to ensure they are a good fit for the brand's long-term growth strategy.