Under what circumstances is the initial franchise fee for a B Bops franchise refundable?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Deposit on Application. To apply for purchase of an initial Franchise, 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 an initial Franchise. Upon submission of the deposit and an Application Agreement, the Company will provide certain services (specified in Item 11 hereof) to assist you in assessing the feasibility of purchasing a Franchise if Company determines that a Franchise should be granted. The Company has absolute discretion in determining whether a Franchise 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 a Franchise (unless such period is extended in the Company's discretion).
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.
If you already own an existing Franchise, you will not be required to execute an Application Agreement or to pay a deposit in connection with the purchase of an additional Franchise from the Company.
MULTIPLE-UNIT ARRANGEMENT
Development Fee.
Source: Item 5 — INITIAL FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable, but there are limited circumstances where a portion of the deposit may be refunded. Specifically, when applying for a single-unit B Bops franchise or for development rights under a multiple-unit arrangement, a $5,000 deposit is required with the Application Agreement. This deposit becomes potentially refundable if B Bops decides not to grant the franchise or development rights, or if either party terminates the Application Agreement before a decision is made.
However, the refund is not the full $5,000. B Bops will deduct the lesser of $4,500 or their actual expenses from the deposit. These expenses include travel, lodging, and a $100 hourly fee for office time incurred while providing services under the Application Agreement. To receive any refund, the applicant must return any confidential information provided by B Bops.
For franchisees purchasing additional B Bops franchises who already own an existing franchise, there is no Application Agreement or deposit required. Therefore, this refund policy would not apply to them. It's important for prospective B Bops franchisees to understand these conditions, as the actual refund could be significantly less than the initial $5,000 deposit, depending on the expenses incurred by B Bops during the application process.