Where can I find the amount of the B Bops development fee that will be applied to the initial franchise fee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the specific amount of the development fee that will be applied to the initial franchise fee can be found in Appendix III. This appendix is titled "DEVELOPMENT FEE AND ALLOCATION TO INITIAL FRANCHISE FEES."
For prospective B Bops developers, it is important to carefully review Appendix III to understand the financial implications of the development agreement. This includes knowing the total development fee amount and how much of it will be credited towards the initial franchise fee for each unit developed. This information is crucial for financial planning and ensuring that you understand the true cost of opening each B Bops location under the development agreement.
It is also important to note that the payment terms outlined in the Development Agreement supersede any conflicting terms in the Unit Franchise Agreement regarding the amount and timing of the initial franchise fee payments. Therefore, developers should prioritize understanding the terms in Appendix III to avoid any confusion or discrepancies during the development process.