How much is the deposit required when submitting an executed Application Agreement to B Bops for a single-unit franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Franchise Fee. The amount of the initial franchise fee to be paid for the purchase of one Franchise under the single-unit arrangement depends on whether you already own and operate an existing Franchise. If you do not own an existing Franchise, the initial franchise fee is $30,000. Of that amount, a $5,000 deposit (described below) must be paid when you submit an executed Application Agreement (Exhibit E hereto) to the Company for the purchase of a Franchise. If the Company decides to grant you a Franchise, you must pay the remaining $20,000 of the initial franchise fee when you execute the Franchise Agreement.
If you already own and operate an existing Franchise, the initial franchise fee is $25,000. This amount must be paid when you execute the Franchise Agreement for the additional Franchise.
Except under the limited circumstances discussed below, the initial franchise fee is not refundable, in whole or in part, under any circumstances. Except as discussed above, the initial franchise fee for Franchises purchased under the Company's single-unit arrangement is uniform in all cases.
Source: Item 5 — INITIAL FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a deposit of $5,000 is required when submitting an executed Application Agreement for a single-unit franchise. This deposit is part of the initial franchise fee of $30,000 if you do not already own an existing B Bops franchise. If B Bops decides to grant the franchise, the $5,000 deposit will be applied toward the initial franchise fee, and the remaining $20,000 is due upon execution of the Franchise Agreement.
However, the deposit is not entirely risk-free. If B Bops denies the franchise application or if either party terminates the Application Agreement before a decision is made, a portion of the deposit may be retained by B Bops. The refund will be the deposit amount minus the lesser of $4,500 or the actual expenses incurred by B Bops, including travel, lodging, and a $100 hourly fee for office time. This means that the franchisee could potentially only receive $500 back from the initial $5,000 deposit, depending on the expenses B Bops incurred while assessing the application.
It is important to note that if you already own and operate an existing B Bops franchise, you are not required to pay this deposit when applying for an additional franchise. This deposit policy is uniform for all new single-unit franchise applicants. Prospective franchisees should carefully review the Application Agreement to understand the conditions under which the deposit may be retained by B Bops and the services provided by B Bops during the application process, as detailed in Item 11 of the FDD.