Which items in the B Bops FDD discuss inspections and audits?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| S. Inspections and audits | Sections 9 and 10 | Items 6 and 11 |
The Franchise premises is subject to inspection and approval by the Company prior to the commencement of operations.
The Company will conduct a pre-opening inspection to confirm that the Franchise premises has been constructed in accordance with the site specific plans and specifications.
It is not contemplated that the fund will be audited on an annual basis, although the Company does anticipate that an annual report concerning receipts and expenditures by the fund will be provided to you and all other franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, Item 6 and Item 11 both contain information regarding inspections and audits. Specifically, the table in Item 11 cross-references the sections of the Franchise Agreement (Sections 9 and 10) that pertain to inspections and audits.
Item 11 also mentions a pre-opening inspection. Prior to the opening of a B Bops franchise, the company will conduct an inspection to ensure the premises has been constructed according to the site-specific plans and specifications. Additionally, the franchise premises is subject to inspection and approval by B Bops prior to the commencement of operations. If B Bops determines that construction has not followed their plans, they can delay the opening until the franchisee makes the necessary corrections at their own expense.
Furthermore, the advertising fund is not expected to be audited annually. However, B Bops anticipates providing an annual report to franchisees detailing the fund's receipts and expenditures. This provides some transparency into how advertising fees are being managed, even without a formal audit.