What is the due date for the royalty and service fee for a B Bops franchise, as stated in Item 6?
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.
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the royalty and service fee, which is 5% of gross sales, is due no later than the 20th day of the calendar month following the month for which the fee is being paid. This means that if a B Bops franchise has sales in January, the royalty and service fee for those sales must be paid by February 20th.
Along with the payment, the franchisee must also submit a gross sales report in the format prescribed by B Bops. This report should detail the gross sales of the franchise for the immediately preceding calendar month. So, for the January sales example, the report submitted with the payment on February 20th would specify the gross sales for January.
It is important for prospective B Bops franchisees to understand this payment schedule to ensure timely payments and avoid potential late fees or penalties. Maintaining accurate sales records and submitting them on time is a key responsibility for franchisees.