What expenses are included in the B Bops advertising fund contributions?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
If and when the Company determines to invoke payment of the advertising fee by you and other franchisees, such fees will be deposited by the Company into a special fund to be administered by the Company and used to finance the development and production of advertising for the B-Bop's Restaurant system. The Company will thereafter be responsible for developing and producing advertising materials to be made available to you and other franchisees for dissemination at your own expense as part of the independent advertising expenditure requirement. All decisions regarding the content, concepts, materials and media utilized in such advertising will be made by the Company in its sole discretion. It is currently anticipated that advertising will be developed for dissemination over radio and television and through print. Since you will be responsible for the expense of disseminating the advertising (including all
media, printing and mailing expenses), the coverage of the advertising presumably will be local in nature to directly benefit your Franchise. It is anticipated that the B-Bop's Restaurants owned by B-Bop's will also be required to contribute to the advertising fund on the same basis and at the same rate as you and the other franchisees. Your contributions to the fund will be on the same basis and at the same rate as all other franchisees currently acquiring a Franchise from the Company. 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. It is not currently anticipated that the Company or any affiliate will receive any payment for providing goods or services to the advertising fund. No decisions have been made by the Company concerning the party or parties who will be responsible for developing and producing the advertising.
If and when the Company determines to invoice payment of the advertising fee by you and the other franchisees, the Company will not use any portion of those fees to solicit new franchise sales.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, if B Bops decides to implement the advertising fee, the fees collected from franchisees will be deposited into a special fund administered by B Bops. This fund will be used to finance the development and production of advertising for the B Bops restaurant system. The advertising developed is anticipated to be disseminated over radio, television, and through print media.
B Bops will be responsible for developing and producing the advertising materials, which will then be made available to franchisees for dissemination at their own expense. This means franchisees will bear the costs of media, printing, and mailing to distribute the advertising materials. The advertising is expected to be local in nature, directly benefiting the franchisee's location. All decisions regarding the content, concepts, materials, and media used in advertising will be made by B Bops at its sole discretion.
B Bops anticipates that its own restaurants will also contribute to the advertising fund on the same basis and rate as the franchisees. While an annual audit of the fund is not planned, B Bops anticipates providing an annual report to franchisees detailing the fund's receipts and expenditures. The document states that B Bops does not expect to receive payment for providing goods or services to the advertising fund, and no decisions have been made regarding who will be responsible for developing and producing the advertising. Furthermore, B Bops confirms that no advertising fees will be used to solicit new franchise sales.