What expenses does the B Bops deposit cover?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Trade Area".
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- Applicant has deposited with Company the sum of $5,000 to cover certain expenses to be incurred by Company in: (i) reviewing Applicant's application for the Rights; (ii) reviewing prospective sites submitted by Applicant for approval; and (iii) providing such additional assistance or information as Company may in its discretion deem appropriate to enable Applicant to determine its interest in providing the Rights. For purposes of this Agreement, the deposit specified above shall be referred to as the "Deposit". Applicant agrees that the Deposit shall not bear interest and that it may be co-mingled with ot
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the deposit of $5,000 covers expenses incurred by B Bops related to the applicant's potential franchise. Specifically, the deposit covers the review of the applicant's application for the rights to develop a B Bops restaurant, the review of prospective sites submitted by the applicant for approval, and the provision of additional assistance or information that B Bops deems appropriate to enable the applicant to determine their interest in securing the rights. This deposit does not bear interest and may be co-mingled with other B Bops funds.
If B Bops decides to grant the rights to the applicant, the deposit will be credited toward the initial franchise fee or the development fee, whichever is applicable. However, if B Bops decides not to grant the rights, or if either party terminates the agreement, the applicant is entitled to a refund of the deposit, minus certain expenses. These expenses include the lesser of $4,500 or the actual expenses incurred by B Bops in providing services, such as travel, lodging, living expenses of B Bops personnel, out-of-pocket expenses, and a charge of $100 per hour for office time spent reviewing the applicant's information or preparing information for the applicant.
It is important to note that failure to return all confidential information to B Bops will result in forfeiture of the entire deposit. The refund will be forwarded to the applicant within ten days after the applicant returns all confidential information. This deposit arrangement is designed to compensate B Bops for the time and resources it expends in evaluating the applicant and potential locations, regardless of whether the franchise agreement is ultimately executed. Prospective franchisees should carefully consider these terms and ensure they understand the conditions under which they may receive a full or partial refund of the deposit.