When is the advertising fee payment due to B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Advertising Fee. Franchisee agrees to pay Company an advertising fee equal to three percent (3%) of gross sales (as defined in Section 9(D) below) generated by the Franchise during each calendar month, beginning with the calendar month in which the Franchise opens for business and continuing for each subsequent calendar month during the Term hereof. Such fee shall be used by Company solely for development of advertising and promotional campaigns, which advertising and promotional campaigns shall be made available to Franchisee for implementation at its own expense in accordance with Section 10(D) hereof. Payments required under this Section shall be made together with the royalty and service fee payment and shall also be made to Company no later than twenty (20) days following the completion of the calendar month for which the advertising fee is being paid. Company may, in its sole discretion, elect to waive payment of all or a portion of the advertising fee provided for in this Section 9(C) for such period of time as Company may deem appropriate. Any such waiver may be revoked at such time as Company in its sole discretion may deem appropriate and Franchisee agrees to thereafter comply with this Section 9(C) in all respects. During any period of waiver of the entire fee, Company shall not be obligated to develop advertising and promotional campaigns for use by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the advertising fee is due no later than twenty (20) days following the completion of the calendar month for which the advertising fee is being paid. This payment is made together with the royalty and service fee payment. The advertising fee is equal to three percent (3%) of gross sales generated by the Franchise during each calendar month, starting from the month the Franchise opens for business.
This means that if a B Bops franchise opens in January, the advertising fee for January's gross sales is due by February 20th. This payment schedule continues each month throughout the term of the franchise agreement. The funds collected from this fee are used by B Bops for the development of advertising and promotional campaigns, which are then made available to the franchisee for implementation at their own expense.
B Bops does retain the right to waive the advertising fee, or a portion thereof, for a period of time they deem appropriate. If the fee is waived in its entirety, B Bops is not obligated to develop advertising and promotional campaigns for the franchisee's use. However, B Bops can revoke this waiver at any time, and the franchisee must then comply with the standard advertising fee payment terms.