What is the required action to initiate the process of purchasing B Bops development rights?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Deposit on Application. To apply for purchase of development rights, you must sign and submit an Application Agreement to the Company, accompanied by a deposit of $5,000. The amount of the deposit is uniform as to all persons currently applying to purchase development rights from the Company. Upon submission of the deposit and Application Agreement, the Company will provide certain services (specified in Item 11 hereof) to assist you in assessing the feasibility of purchasing the development rights if Company determines that such rights should be granted. The Company has absolute discretion in determining whether the development rights will be granted. You will be notified by the Company in writing within ninety (90) days of submitting the Application Agreement regarding its decision to grant the development rights (unless such period is extended in the Company's discretion).
In the event the Company decides to grant you the development rights, the deposit will be applied toward payment of the development fee. If, on the other hand, the Company determines not to grant such rights, or if the Application Agreement is terminated by either party before a decision on granting the developments rights has been made, a portion of the deposit will be refunded upon return of any confidential information which may have been provided to you by the Company. The refund will be equal to the amount of the 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 the applicant 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, to begin the process of acquiring development rights, a prospective franchisee must sign and submit an Application Agreement to B Bops, accompanied by a deposit of $5,000. This deposit amount is the same for all applicants seeking development rights from B Bops.
Upon receiving the deposit and Application Agreement, B Bops will offer services, detailed in Item 11 of the FDD, to help the applicant evaluate the feasibility of purchasing these development rights, assuming B Bops believes such rights should be granted. However, B Bops retains absolute discretion in deciding whether to grant the development rights.
Within 90 days of submitting the Application Agreement, B Bops will notify the applicant in writing about its decision regarding the development rights, although this period may be extended at B Bops's discretion. If B Bops grants the development rights, the $5,000 deposit will be applied toward the development fee. If B Bops denies the rights or the Application Agreement is terminated before a decision is made, a portion of the deposit will be refunded, minus either $4,500 or the actual expenses incurred by B Bops (including travel, lodging, and a $100 hourly fee for office time), whichever is less, provided any confidential information is returned. Either party can terminate the Application Agreement with written notice, entitling the applicant to a refund of the deposit calculated as described.