What additional financial documents must a B Bops franchisee submit to the company?
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, franchisees must submit a gross sales report each month in a format prescribed by the company. This report must specify the gross sales of the franchise for the immediately preceding calendar month. The franchisee must submit this report along with the royalty and service fee payment, which is due no later than the 20th day of the month following the month for which the fee is being paid.
In addition to the gross sales report, B Bops reserves the right to request a report detailing all independent advertising expenditures made by the franchisee. This report must be accompanied by copies of supporting invoices. The timing of this report is determined by B Bops.
These reporting requirements ensure that B Bops can accurately calculate royalties, monitor the financial performance of individual franchises, and maintain brand consistency in advertising efforts. Franchisees should maintain accurate records of all sales and advertising expenditures to comply with these requirements.