When are B Bops independent advertising expenditures paid?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Independent advertising expenditures | 2% of gross sales. | During each quarter. | See Item 11 of this disclosure document for a detailed discussion. |
NOTES:
- 1 All fees and other amounts noted in this table are imposed by and payable to the Company, except for the independent advertising expenditure which is imposed by the Company, but payable to local advertising sources. All fees and other amounts payable to the Company are non-refundable.
- 2 "Gross sales" means the aggregate amount of sales of food, beverage and promotional items generated by the Franchise and includes all sales, receipts and revenues in any form and from any and all sources whatsoever, directly or indirectly, received through operation of the Franchise, whether for cash or credit and regardless of collection in the case of credit. "Gross sales" does not include the amount of any sales or other taxes imposed by any governmental authority directly on sales and collected from customers, provided that the amount of such tax is added to the selling price or otherwise absorbed therein and actually paid to such governmental authority.
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, independent advertising expenditures, which amount to 2% of gross sales, are paid during each quarter. These expenditures are paid to local advertising sources, although the fee is imposed by B Bops. Item 11 of the FDD provides a more detailed discussion of these expenditures.
It is important to note that all fees and other amounts payable to B Bops are non-refundable. Prospective franchisees should carefully review Item 11 to understand how these advertising funds are used and to ensure they align with their marketing strategies. Understanding the specifics of these expenditures is crucial for budgeting and financial planning.
Franchisees should also be aware that 'gross sales' means the aggregate amount of sales of food, beverage and promotional items generated by the Franchise and includes all sales, receipts and revenues in any form and from any and all sources whatsoever, directly or indirectly, received through operation of the Franchise, whether for cash or credit and regardless of collection in the case of credit. 'Gross sales' does not include the amount of any sales or other taxes imposed by any governmental authority directly on sales and collected from customers, provided that the amount of such tax is added to the selling price or otherwise absorbed therein and actually paid to such governmental authority.