Is the independent advertising expenditure for a B Bops franchise in addition to, or in lieu of, the advertising fee paid to the company?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Company reserves the right to require Franchisee to submit a report detailing all independent advertising expenditures (along with copies of supporting invoices) at such times as Company may direct.
- C. Advertising Fee. Franchisee agrees to pay Company an advertising fee equal to three percent (3%) of gross sales (as defined in Section 9(D) below) generated by the Franchise during each calendar month, beginning with the calendar month in which the Franchise opens for business and continuing for each subsequent calendar month during the Term hereof. Such fee shall be used by Company solely for development of advertising and promotional campaigns, which advertising and promotional campaigns shall be made available to Franchisee for implementation at its own expense in accordance with Section 10(D) hereof. Payments required under this Section shall be made together with the royalty and service fee payment and shall also be made to Company no later than twenty (20) days following the completion of the calendar month for which the advertising fee is being paid. Company may, in its sole discretion, elect to waive payment of all or a portion of the advertising fee provided for in this Section 9(C) for such period of time as Company may deem appropriate. Any such waiver may be revoked at such time as Company in its sole discretion may deem appropriate and Franchisee agrees to thereafter comply with this Section 9(C) in all respects. During any period of waiver of the entire fee, Company shall not be obligated to develop advertising and promotional campaigns for use by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees are required to pay an advertising fee. The FDD states that B Bops reserves the right to require franchisees to submit a report detailing all independent advertising expenditures. This suggests that independent advertising expenditures are tracked separately from the advertising fee.
The advertising fee is equal to 3% of gross sales generated by the franchise each calendar month. This fee is used by B Bops for the development of advertising and promotional campaigns, which are then made available to the franchisee for implementation at their own expense.
B Bops may choose to waive the advertising fee, during which time they are not obligated to develop advertising and promotional campaigns for the franchisee's use. The franchisee is responsible for implementing advertising campaigns at their own expense, as stated in Section 10(D). The fact that B Bops requires a report detailing all independent advertising expenditures implies that these expenditures are in addition to the advertising fee.