Are the independent advertising expenditures for a B Bops franchise required during the entire term of the agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Independent Advertising.
Franchisee shall, during each calendar quarter during the Term of this Agreement, expend at least two percent (2%) of the gross sales (as defined in Section 9(D) above) generated by the Franchise for independent advertising to be undertaken by Franchisee.
The advertising expenditures required by this Section 10(D) shall be in addition to, not in lieu of, the advertising fee required to be paid directly to Company under Section 9(C) of this Agreement.
Franchisee may satisfy the independent advertising requirement by implementation of advertising and promotional campaigns provided by Company in accordance with Section 11(A) hereof or may create and implement advertising or promotional campaigns of its own, provided that any advertising or promotional campaign developed by Franchisee shall be submitted to Company for its written approval prior to implementation thereof.
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.
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 make independent advertising expenditures during the entire term of the agreement. Specifically, during each calendar quarter, a B Bops franchisee must spend at least two percent (2%) of their gross sales on independent advertising.
These advertising expenditures are in addition to the advertising fees that franchisees are required to pay directly to B Bops. Franchisees have the option to implement advertising and promotional campaigns provided by B Bops or create their own, but any franchisee-developed campaigns must receive written approval from B Bops before they are implemented.
B Bops retains the right to request franchisees to submit reports detailing all independent advertising expenditures, along with supporting invoices, at any time. This allows B Bops to monitor compliance with the advertising requirements and ensure that franchisees are actively promoting their businesses within the guidelines set forth in the franchise agreement.