Does B Bops have discretion in determining whether a franchise will be granted?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
To apply for purchase of an initial Franchise, 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 an initial Franchise. Upon submission of the deposit and an Application Agreement, the Company will provide certain services (specified in Item 11 hereof) to assist you in assessing the feasibility of purchasing a Franchise if Company determines that a Franchise should be granted. The Company has absolute discretion in determining whether a Franchise 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 a Franchise (unless such period is extended in the Company's discretion).
In the event the Company decides to grant you a Franchise, the deposit will be applied toward payment of the initial franchise fee. If, on the other hand, the Company determines that a Franchise will not be granted, or if either party terminates the Application Agreement before a decision on granting a Franchise has been made, a portion of the deposit will be refunded to you
once you have returned any confidential information which may have been provided to you by the Company. The refund will be equal to the amount of 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 you 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 a franchise. To apply for a franchise, a prospective franchisee must submit an Application Agreement along with a $5,000 deposit. After the application is submitted, B Bops will evaluate the application and provide services to help the applicant assess the feasibility of purchasing the franchise. B Bops will then notify the applicant in writing of its decision within 90 days, although this period may be extended at B Bops's discretion.
If B Bops decides to grant the franchise, the $5,000 deposit will be applied toward the initial franchise fee. However, if B Bops decides not to grant the franchise, or if either party terminates the Application Agreement before a decision is made, a portion of the deposit will be refunded to the applicant after they return any confidential information provided by B Bops. The refund will be the deposit amount minus the lesser of $4,500 or the actual expenses incurred by B Bops, including travel, lodging, and a $100 hourly fee for office time.
This discretion gives B Bops significant control over who becomes a franchisee. The application deposit is partially at risk, as B Bops can deduct expenses incurred while assessing the application. This arrangement is fairly typical in franchising, where franchisors need to carefully vet potential franchisees to protect their brand and ensure a good fit. Prospective franchisees should carefully review the Application Agreement and understand the conditions under which the deposit will be refunded.