What must accompany each royalty payment made to B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
and Service Fee. Franchisee agrees to pay Company a monthly royalty and service fee equal to five percent (5%) of gross sales (as defined in Section 9(D)
hereof) generated by the Franchise during each calendar month (or portion thereof), beginning with the calendar month in which the Franchise opens for business and continuing for each subsequent calendar month during the Term hereof. Payment of the royalty and service fee shall be made to Company no later than the twentieth (20th) day of the calendar month following the calendar month for which the royalty and service fee is being paid. Such payment shall be accompanied by a gross sales report in a format prescribed by Company which shall specify the gross sales of the Franchise for the immediately preceding calendar month.
- C. Advertising Fee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, each royalty payment must be accompanied by a gross sales report. Franchisees are required to pay a monthly royalty and service fee equal to 5% of their gross sales. This payment is due no later than the 20th day of the calendar month following the month for which the royalty is being paid.
The gross sales report must be in a format prescribed by B Bops and specify the gross sales of the franchise for the immediately preceding calendar month. This ensures that B Bops can accurately verify the royalty payment and track the financial performance of each franchise location.
This requirement is standard practice in franchising, as it allows the franchisor to collect royalties based on a percentage of sales and monitor the franchisee's revenue. Franchisees should maintain accurate records of their gross sales to ensure timely and accurate royalty payments and avoid potential disputes with B Bops.