If B Bops determines not to grant development rights, how is the applicant notified?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Deposit on Application. To apply for purchase of development rights, you must sign and submit an Application Agreement to the Company, accompanied by a deposit of $5,000. The amount of the deposit is uniform as to all persons currently applying to purchase development rights from the Company. Upon submission of the deposit and Application Agreement, the Company will provide certain services (specified in Item 11 hereof) to assist you in assessing the feasibility of purchasing the development rights if Company determines that such rights should be granted. The Company has absolute discretion in determining whether the development rights will be granted. You will be notified by the Company in writing within ninety (90) days of submitting the Application Agreement regarding its decision to grant the development rights (unless such period is extended in the Company's discretion).
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 you apply for development rights, B Bops will notify you of their decision in writing. After you submit the Application Agreement and the $5,000 deposit, B Bops has absolute discretion on whether to grant you the development rights. B Bops will notify you in writing of their decision within 90 days of submitting your Application Agreement. However, B Bops has the discretion to extend this 90 day period.
If B Bops decides not to grant you development rights, a portion of your deposit will be refunded to you once you return any confidential information that B Bops provided to you. The amount refunded will be the $5,000 deposit, minus the lesser of $4,500, or the actual expenses B Bops incurred while providing services under the Application Agreement. These expenses include travel, lodging, and a $100 hourly fee for office time.
Either you or B Bops can terminate the Application Agreement at any time by providing written notice to the other party. If the Application Agreement is terminated, you will receive a refund of your deposit, calculated using the method described above.