Under what circumstances will a portion of the deposit be refunded to the applicant for a B Bops franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a portion of the $5,000 deposit submitted with the Application Agreement may be refunded under specific circumstances. If B Bops determines that a franchise will not be granted to the applicant, a portion of the deposit will be refunded. Similarly, if either the applicant or B Bops terminates the Application Agreement before a decision is made regarding the granting of a franchise, a partial refund will be issued.
The amount refunded will be the initial $5,000 deposit minus certain expenses incurred by B Bops. Specifically, the deduction will be the lesser of $4,500 or the actual expenses incurred by B Bops for services provided under the Application Agreement. These expenses can include travel, lodging, and a $100 hourly fee for office time spent by B Bops. To receive the refund, the applicant must return any confidential information that B Bops provided.
This refund policy applies both to single-unit franchise applications and applications for multiple-unit development rights. The FDD specifies that the deposit refund calculation is the same in either scenario. This ensures that applicants are not penalized for B Bops's expenses if the franchise or development rights are not ultimately granted, although the applicant will not receive the full deposit back due to the deduction of expenses.