If B Bops terminates the Application Agreement, what refund is the franchisee 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. Termination by the Company without cause | Sections 4 and 7 | The Company has the right to terminate the Application Agreement at any time without cause. The Application Agreement also terminates in the event the Company advises you that the development rights or franchise rights, whichever is applicable, will not be granted. Upon termination you will be entitled to a refund equal to the amount of the deposit ($2,500) minus the lesser of (i) $2,000 or (ii) the actual expenses incurred by the Company, as provided in the Application Agreement. |
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 B Bops terminates the Application Agreement without cause, the franchisee is entitled to a refund of their deposit. The amount of the deposit is $2,500. However, B Bops will deduct the lesser of $2,000 or the actual expenses they incurred as outlined in the Application Agreement.
In practical terms, this means that a prospective B Bops franchisee might not receive the full $2,500 back if B Bops has already incurred expenses related to the application. The franchisee should carefully review the Application Agreement to understand what types of expenses B Bops might deduct.
It is important to note that the refund policy applies specifically when B Bops terminates the Application Agreement without cause. The FDD does not specify what happens to the deposit if the franchisee breaches the agreement or if termination occurs under different circumstances. Therefore, a prospective franchisee should clarify the conditions under which they would be entitled to a full or partial refund of the deposit.