How will B Bops communicate a waiver of the advertising fee to franchisees?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
As noted in Item 6 of this disclosure document, you are required under the terms of the Franchise Agreement to pay the Company a monthly advertising fee equal to three percent (3%) of the gross sales of your Franchise. The Company, however, reserves the right to waive payment of all or part of the advertising fee by you and other franchisees for such period as the Company may in its discretion deem appropriate. Any waiver will be communicated to you, in writing, and may be revoked at such time as the Company, in its sole discretion, deems appropriate. Upon revocation of any waiver, you and the other franchisees will be required to commence payment of the advertising fee. The Company currently plans to waive payment of the advertising fee in whole until such time as the number of franchises sold will provide advertising fee income sufficient to finance the development of advertising and promotional campaigns. During any period that the Company has determined to waive payment of the advertising fee in whole, the Company will not be obligated to develop or produce advertising on behalf of you or the other franchisees. You will, however, be required to continue to observe the independent advertising expenditure discussed below. No assurances can be given that the Company will sell a sufficient number of Franchises to commence operation of the advertising fund.
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, B Bops reserves the right to waive the advertising fee, which is typically 3% of gross sales. If B Bops chooses to waive this fee, it will inform franchisees in writing. This waiver may be revoked at any time at B Bops's discretion, and franchisees will then be required to resume payment of the advertising fee.
Currently, B Bops plans to waive the advertising fee until the income from franchise sales is sufficient to fund advertising and promotional campaigns. During any period that B Bops waives the advertising fee, it is not obligated to develop or produce advertising on behalf of franchisees. However, franchisees are still required to adhere to the independent advertising expenditure requirements.
It's important to note that there are no guarantees that B Bops will sell enough franchises to start the advertising fund. Even if the advertising fee is waived by B Bops, franchisees are still required to spend a minimum of 2% of gross sales on independent advertising each quarter. This independent advertising must be approved by B Bops.