Towards what amount is the deposit credited if B Bops grants the rights to the applicant?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
o negotiate.
-
- If Company, in its sole discretion, determines to grant the Rights to Applicant, the Deposit shall be credited toward the amount required to be paid by Applicant as the initial
franchise fee or the development fee (whichever shall be applicable). If Company determines that the Rights will not be granted to Applicant, or if either party terminates this Agreement, Applicant shall be entitled to a refund (upon return of all confidential information) equal to the Deposit minus the lesser of: (i) Four Thousand Five Hundred Dollars ($4,500); or (ii) the actual expenses incurred by Company in providing the services identified in Section 2 hereof. For purposes of this Section 7, "actual expenses" shall be deemed to include all travel, lodging and other living expenses reasonably incurred by Company personnel, any other out of pocket expenses incurred by Company hereunder and a one hundred dollar ($100.00) per hour charge for office time spent reviewing information submitted by Applicant or preparing information to be furnished to Applicant. Company shall forward any refund to Applicant within ten (10) days after Applicant has returned all confidential information to Company. Failure to return any confidential information shall result in forfeiture of the entire Deposit and in such other action as Company may in its discretion deem appropriate.
-
- If Company determines to grant the Rights to Applicant, Company will forward appropriate documentation to Applicant for execution. Failure by Applicant to execute such documentation and to deliver it, together with payment of any initial franchise fee or development fee (whichever shall be applicable), to Company within fifteen (15) days after Applicant's receipt of such documents shall be deemed an election by Applicant not to purchase the Rights and to terminate this Agreement, at which time Company's grant of the Rights shall become null and void and Applicant shall have no further interest with respect to the Trade Area.
-
- The parties hereto acknowledge that this Agreement does not constitute an offer of the Rights by Company, nor a commitment by Company to grant the Rights to Applicant.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if B Bops decides to grant the rights to an applicant, the deposit is credited towards the amount required to be paid as the initial franchise fee or the development fee, whichever is applicable. The applicant deposits $5,000 with B Bops to cover expenses related to reviewing the application, prospective sites, and providing additional assistance. This deposit does not bear interest and may be co-mingled with other B Bops funds.
However, B Bops does not guarantee the rights to the applicant, maintaining absolute discretion in the decision. This determination depends on factors such as the applicant's character, business background, financial resources, the suitability of the premises, and the ability to secure necessary permits and licenses. The applicant is responsible for arranging financing and securing acceptable sites.
If B Bops does not grant the rights or if either party terminates the agreement, the applicant is entitled to a refund of the deposit, minus either $4,500 or the actual expenses incurred by B Bops, whichever is less. These expenses include travel, lodging, personnel costs at $100 per hour, and other out-of-pocket expenses. The refund is contingent upon the applicant returning all confidential information within ten days; failure to do so results in forfeiture of the entire deposit.