What is the minimum amount that will be deducted from the deposit refund for a B Bops franchise?
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, when applying for a franchise, a deposit of $5,000 is required. If B Bops does not grant the franchise or if either party terminates the Application Agreement before a decision is made, a refund of the deposit will be issued after you return any confidential information. However, the refund will not be the full $5,000.
The amount deducted from the $5,000 deposit refund will be the lesser of two amounts: $4,500, or the actual expenses incurred by B Bops. These actual expenses include travel, lodging, and a $100 hourly fee for office time spent by B Bops in providing services under the Application Agreement.
Therefore, the minimum deduction from the $5,000 deposit refund would be $4,500. This means the maximum refund a prospective B Bops franchisee could receive is $500, assuming the company's actual expenses are less than $4,500. This policy is in place to cover B Bops's costs associated with processing the application and assessing the feasibility of granting a franchise.