What is the hourly fee charged by B Bops for office time when calculating the deposit refund?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event the Company decides to grant you a Franchise, the deposit will be applied toward payment of the initial franchise fee. If, on the other hand, the Company determines that a Franchise will not be granted, or if either party terminates the Application Agreement before a decision on granting a Franchise has been made, a portion of the deposit will be refunded to you
once you have returned any confidential information which may have been provided to you by the Company. The refund will be equal to the amount of 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 you 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, when a prospective franchisee applies for a franchise, they must submit an Application Agreement with a $5,000 deposit. If B Bops does not grant the franchise or the agreement is terminated, a portion of this deposit is refundable.
The refund amount is calculated by subtracting B Bops's expenses from the initial $5,000 deposit. These expenses include actual costs for travel, lodging, and office time. The hourly fee for office time is explicitly stated as $100 per hour. The total deduction from the deposit will be the lesser of $4,500 or the actual expenses incurred by B Bops.
This means that if B Bops spends less than $4,500 on assessing the application, the franchisee will receive a refund of the deposit minus the actual expenses. However, if B Bops's expenses exceed $4,500, the franchisee will only receive a refund of $500. The $100 hourly fee for office time is a component of these expenses, so it directly impacts the potential refund amount. Prospective franchisees should be aware of this fee and how it can reduce their deposit refund if their application is not approved.