Will the B Bops advertising fund be audited annually?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
It is not contemplated that the fund will be audited on an annual basis, although the Company does anticipate that an annual report concerning receipts and expenditures by the fund will be provided to you and all other franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the advertising fund is not expected to be audited annually. However, B Bops anticipates providing franchisees with an annual report detailing the receipts and expenditures of the fund. This report will give franchisees insight into how the advertising fees are being utilized to promote the B Bops brand.
While a full audit offers a deeper level of scrutiny and verification, the annual report should still provide a reasonable level of transparency. Franchisees can use this report to assess whether the funds are being managed effectively and in accordance with the franchise agreement. If franchisees have concerns or questions about the report, they can address them with B Bops directly.
It is important to note that B Bops does not currently have an advertising council of franchisees to advise on advertising policies. This means that decisions regarding advertising content, concepts, materials, and media are made solely by B Bops. While the annual report provides some transparency, franchisees have limited direct input into how the advertising fund is managed and spent. Prospective franchisees should consider this when evaluating the B Bops franchise opportunity.