Who bears the expense of implementing the advertising and promotional campaigns provided by B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Company shall, with the funds collected pursuant to the advertising fee paid by Franchisee and all other franchisees, develop and provide to Franchise advertising, promotional and public relations campaigns to promote the Licensed System and the Licensed Marks.
All decisions from time to time regarding the content, concepts, materials and media used in developing such campaigns shall be within the sole discretion of Company.
Franchisee shall be responsible at its own expense for implementing such campaigns in accordance with Section 10(D) hereof.
Notwithstanding the foregoing, Franchisee acknowledges and agrees that Company shall be under no obligation to develop or provide advertising campaigns to Franchisee during any period of time in which Company has elected to waive payment in whole of the advertising fee by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with implementing the advertising and promotional campaigns. B Bops, the franchisor, develops and provides these campaigns using the advertising fees collected from all franchisees. However, the actual costs of putting these campaigns into action at the local franchise level are borne by the individual franchisee.
This means that while a franchisee contributes to the advertising fund (equal to 3% of gross sales) that B Bops uses to create advertising materials, they must also budget for the costs of using those materials in their own location. These implementation costs could include expenses related to local media buys, printing and distributing flyers, or any other local promotional activities.
This arrangement is fairly common in franchising, where franchisees often pay into a collective advertising fund but are also responsible for some local marketing efforts. A prospective B Bops franchisee should carefully consider these implementation costs when developing their business plan, as they can add significantly to the overall operating expenses. It is also important to note that B Bops has the discretion to waive the advertising fee, during which time they are not obligated to develop advertising campaigns.