What happens to the deposit if the B Bops Application Agreement is terminated?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
l be applicable). If Company determines that the Rights will not be granted to Applicant, or if either party terminates this Agreement, Applicant shall be entitled to a refund (upon return of all confidential information) equal to the Deposit minus the lesser of: (i) Four Thousand Five Hundred Dollars ($4,500); or (ii) the actual expenses incurred by Company in providing the services identified in Section 2 hereof. For purposes of this Section 7, "actual expenses" shall be deemed to include all travel, lodging and other living expenses reasonably incurred by Company personnel, any other out of pocket expenses incurred by Company hereunder and a one hundred dollar ($100.00) per hour charge for office time spent reviewing information submitted by Applicant or preparing information to be furnished to Applicant. Company shall forward any refund to Applicant within ten (10) days after Applicant has returned all confidential information to Company. Failure to return any confidential information shall result in forfeiture of the entire Deposit and in such other action as Company may in its discretion
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Application Agreement can be terminated by either the company or the applicant. If B Bops determines not to grant the rights to the applicant, or if either party terminates the agreement, the applicant is entitled to a refund of the deposit. However, this refund is subject to certain deductions.
The refund amount will be the deposit minus the lesser of two amounts: $4,500, or the actual expenses incurred by B Bops in providing services as outlined in Section 2 of the agreement. These actual expenses include 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.
B Bops will forward any refund to the applicant within 10 days after the applicant returns all confidential information. Failure to return all confidential information will result in the applicant forfeiting the entire deposit. This policy ensures that B Bops is compensated for its expenses and that its confidential information is protected, even if the application does not result in a franchise agreement.