What fee does the Developer pay for the B Bops development rights?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- DEVELOPMENT FEE. In consideration of the development rights granted by Company hereunder, Developer agrees to pay Company by certified or cashier's check the development fee specified in Appendix III attached hereto upon execution of this Agreement. Such fee shall be deemed fully earned upon execution of this Agreement and shall not be refundable to Developer under any circumstances. Any deposit paid by Developer prior to execution of this Agreement shall be applied toward satisfaction of the development fee. A portion of such development fee, to be specified in Appendix III attached hereto, shall be applied by Company toward the initial franchise fee payable under the Unit Franchise Agreement executed for each Unit developed by Developer pursuant to this Agreement. Company and Developer acknowledge and agree that the payment terms imposed by this Agreement with respect to the development fee and the initial franchise fee payable for Units developed pursuant hereto are in lieu of and supersede the terms of any Unit Franchise Agreement relating to the amount and time of payment of the initial franchise fee.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a Developer must pay a development fee for the development rights granted by B Bops. This fee is specified in Appendix III of the agreement and is payable via certified or cashier's check upon the execution of the agreement. Once the agreement is executed, the fee is considered fully earned and is non-refundable under any circumstances. Any deposit the Developer paid before signing the agreement will be applied towards this development fee.
Furthermore, a portion of the development fee, as detailed in Appendix III, will be credited towards the initial franchise fee required under the Unit Franchise Agreement for each B Bops unit the Developer establishes. B Bops and the Developer agree that the payment terms outlined in the Development Agreement regarding the development fee and the initial franchise fee supersede any conflicting terms in any Unit Franchise Agreement related to the amount and timing of the initial franchise fee payment.
In essence, this means that the Developer makes an upfront investment for the exclusive right to develop B Bops restaurants within a specific area, and a portion of this initial investment is later applied to the standard franchise fee for each individual unit as it opens. This structure incentivizes the Developer to proceed with the agreed-upon development schedule, as the initial fee is non-refundable.