What happens to the deposit if B Bops determines not 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 not to grant development rights, a portion of the $5,000 deposit will be refunded, provided the applicant returns any confidential information. The refund amount is calculated by subtracting certain expenses from the initial $5,000 deposit.
The expenses deducted from the deposit are the lesser of two amounts: $4,500, or the actual expenses incurred by B Bops. These actual expenses include travel and lodging and a $100 hourly fee for office time spent by B Bops while providing services under the Application Agreement. This means that the refund could be as little as $500 if B Bops chooses to deduct the flat $4,500.
The Application Agreement can be terminated by either party before a decision is made on granting development rights, which would also result in a similar refund calculation. This policy ensures that B Bops is compensated for its time and expenses, while the applicant receives a partial refund of their deposit.