Is the independent advertising expenditure requirement for B Bops franchisees still in effect even if the advertising fund fees are waived?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Independent Advertising Expenditures. As noted in Item 6 of this disclosure document, you will be required to spend a minimum of two percent (2%) of the gross sales of your Franchise for independent advertising during each quarter. This requirement remains in effect even though the Company has waived payment of your fees to the advertising fund and is not providing advertising materials for your use. You may satisfy the independent advertising requirement by implementing advertising and promotional campaigns provided by the Company (during those periods when the Company is required to provide such advertising) or you may create and implement advertising of your own, provided any advertising which you have developed has been submitted to and approved by the Company prior to its use. The Company will advise you within a reasonable period (usually 30 days) whether the proposed advertising materials are acceptable. The Company reserves the right to require you to submit an independent advertising report (along with supporting invoices) at such times as the Company may direct.
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, the independent advertising expenditure requirement remains in effect even if the company waives the advertising fund fees. Franchisees are required to spend a minimum of two percent (2%) of their gross sales on independent advertising each quarter, regardless of any waiver of advertising fund fees.
B Bops franchisees can fulfill this independent advertising requirement by using advertising and promotional campaigns provided by the company (when available) or by creating their own advertising materials. However, any franchisee-developed advertising must be submitted to B Bops for approval before use. The company typically advises franchisees within 30 days whether the proposed advertising is acceptable.
B Bops retains the right to request an independent advertising report from franchisees, along with supporting invoices, at any time. This ensures that franchisees are meeting their advertising obligations even when not contributing to the advertising fund. This requirement ensures consistent local marketing efforts, regardless of the status of the broader advertising fund.