How much is the initial franchise fee for the first B Bops franchise purchased?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Application deposit1 | $5,000 | Lump sum | Upon submission of Application Agreement | Company |
| Initial franchise fee1 | $30,000 for first Franchise purchased; $20,000 for each additional Franchise | Lump sum | Upon execution of the Franchise Agreement; $2,500 credit allowed for deposit paid under Application Agreement | Company |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the initial franchise fee for the first franchise purchased is $30,000. This fee is paid in a lump sum upon the execution of the Franchise Agreement. However, the FDD notes that a $2,500 credit is allowed for the deposit paid under the Application Agreement, effectively reducing the initial franchise fee if an application deposit was previously made. The initial franchise fee is to be paid to the Company.
This initial franchise fee grants the franchisee the right to operate a B Bops restaurant under the terms and conditions outlined in the franchise agreement. It is a one-time fee and does not cover other expenses associated with starting the franchise, such as real estate, construction, equipment, or operating capital. The FDD specifies that this fee is for the first franchise purchased, with a reduced fee for each additional franchise, indicating potential cost savings for multi-unit operators.
Prospective franchisees should factor this $30,000 initial franchise fee (less the $2,500 credit, if applicable) into their overall startup costs. It's important to note that this fee is non-refundable and is separate from the ongoing royalty and advertising fees that B Bops will collect during the operation of the franchise. Understanding the terms of the franchise agreement is crucial to understanding the obligations and benefits associated with this fee.