What happens to the deposit if B Bops decides to grant the rights to the applicant?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
o negotiate.
-
- If Company, in its sole discretion, determines to grant the Rights to Applicant, the Deposit shall be credited toward the amount required to be paid by Applicant as the initial
franchise fee or the development fee (whichever shall 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, if B Bops decides to grant the Rights to an applicant, the deposit will be credited toward the amount required to be paid by the applicant as the initial franchise fee or the development fee, whichever is applicable.
In the event that B Bops does not grant the Rights, or if either party terminates the agreement, the applicant is entitled to a refund of the deposit. However, from this deposit, B Bops will deduct the lesser of $4,500 or the actual expenses incurred by B Bops in providing services, such as reviewing the application and prospective sites. These actual expenses include travel, lodging, out-of-pocket expenses, and a $100 per hour charge for office time spent reviewing or preparing information.
B Bops will forward any refund to the applicant within ten days after the applicant has returned all confidential information. Failure to return this information will result in forfeiture of the entire deposit.