What is the hourly fee charged by B Bops for office time deducted from 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, if the company denies a franchise application or the applicant terminates the agreement before a decision is made, a portion of the initial $5,000 deposit will be refunded. However, this refund is subject to deductions.
The refund amount is calculated by subtracting the lesser of two amounts from the initial deposit: either $4,500, or the actual expenses incurred by B Bops. These actual expenses include travel, lodging, and a specific hourly fee for office time spent on the application.
Specifically, B Bops charges a $100 hourly fee for office time related to providing services under the Application Agreement. This fee, along with other expenses, will be deducted from the deposit refund. This means that the refund a potential franchisee receives could be significantly less than the initial $5,000 deposit, depending on the time and resources B Bops invests in reviewing the application.