If I terminate the B Bops Application Agreement, what amount of my deposit will I be entitled to?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| D. Termination by You | Sections 4 and 8 | You may terminate at anytime without cause. Upon termination you will be entitled to the amount of the deposit ($5,000) minus the lesser of (i) $4,500 or (ii) the actual expenses incurred by the Company, as provided in the Application Agreement. If the Company determines to grant you development rights or franchise rights (whichever is applicable) and you do not execute and deliver the appropriate documentation and pay the initial franchise fee or development fee, whichever is applicable, within 15 days after receipt of the documents the Application Agreement shall become |
|---|---|---|
| null and void. | ||
| E. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if you terminate the Application Agreement, the amount of the deposit is $5,000. However, the amount you are entitled to will be reduced by either $4,500 or the actual expenses B Bops incurred, whichever is less.
In practical terms, this means that if B Bops's actual expenses are less than $4,500, you will receive a refund of your $5,000 deposit minus those actual expenses. For example, if B Bops only incurred $1,000 in expenses, you would receive a refund of $4,000. However, if B Bops's actual expenses are $4,500 or more, you will only receive a refund of $500.
It is important to note that this refund policy applies specifically to the Application Agreement. If B Bops determines to grant you development rights or franchise rights and you fail to execute the appropriate documentation or pay the initial fees within 15 days, the Application Agreement becomes null and void, potentially affecting your deposit.
Prospective franchisees should carefully consider these terms and discuss with B Bops what typical expenses are incurred during the application process to better understand the potential refund amount upon termination. Understanding these potential costs is a crucial part of assessing the financial risks associated with the B Bops franchise opportunity.