What happens to the deposit if B Bops decides to grant the development rights?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event the Company decides to grant you the development rights, the deposit will be applied toward payment of the development fee. If, on the other hand, the Company determines not to grant such rights, or if the Application Agreement is terminated by either party before a decision on granting the developments rights has been made, a portion of the deposit will be refunded upon return of any confidential information which may have been provided to you by the Company. The refund will be equal to the amount of the 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 the applicant 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, if B Bops decides to grant a prospective franchisee the development rights, the initial deposit will be applied toward the payment of the development fee. To apply for development rights, a deposit of $5,000 is required. The development fee is calculated by multiplying $5,000 by the number of franchises to be developed according to the development schedule.
This means that the initial $5,000 deposit acts as a credit towards the larger development fee. The development fee itself is determined by the number of B Bops franchises the franchisee commits to developing. If the franchisee fulfills the development schedule, the entire development fee will be applied towards the initial franchise fees due to B Bops.
However, if B Bops determines not to grant the development rights, or if the Application Agreement is terminated by either party before a decision is made, a portion of the $5,000 deposit will be refunded. The refund amount 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. The Application Agreement can be terminated by either party with written notice, resulting in a refund calculated as described.