Will B Bops franchisees contribute to the advertising fund at the same rate as other franchisees?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, franchisees will contribute to the advertising fund at the same rate as other franchisees. The FDD specifies that B Bops restaurants owned by the company will also be required to contribute to the advertising fund on the same basis and at the same rate as franchisees. The contribution to the fund will be the same rate for all franchisees currently acquiring a franchise from B Bops.
B Bops may choose to waive the advertising fee for franchisees, and during such times, B Bops is not obligated to develop or produce advertising. However, franchisees are still required to observe the independent advertising expenditure, which is a minimum of two percent (2%) of gross sales each quarter. This independent advertising expenditure remains in effect even if B Bops has waived payment of fees to the advertising fund and is not providing advertising materials.
It's important to note that the advertising fund may not be audited annually, but B Bops anticipates providing an annual report concerning receipts and expenditures to all franchisees. Franchisees are responsible for the expense of disseminating advertising, which will likely be local in nature to benefit the franchise directly. B Bops does not use any portion of the advertising fees to solicit new franchise sales. Prospective franchisees should consider the implications of these advertising requirements and the potential for waivers or changes in the future.