What is the maximum amount B Bops can deduct from my deposit if I terminate the Application Agreement?
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 you terminate the Application Agreement, the amount of your deposit that you will be entitled to depends on who is terminating the agreement.
If you terminate the Application Agreement, B Bops will deduct the lesser of $4,500 or the actual expenses they incurred as provided in the Application Agreement from your $5,000 deposit. Therefore, the maximum amount B Bops can deduct from your deposit if you terminate the Application Agreement is $4,500.
If B Bops terminates the Application Agreement without cause, they will deduct the lesser of $2,000 or the actual expenses they incurred as provided in the Application Agreement from your $2,500 deposit.