What is the monthly royalty and service fee for a B Bops franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
and Service Fee. Franchisee agrees to pay Company a monthly royalty and service fee equal to five percent (5%) of gross sales (as defined in Section 9(D)
hereof) generated by the Franchise during each calendar month (or portion thereof), beginning with the calendar month in which the Franchise opens for business and continuing for each subsequent calendar month during the Term hereof. Payment of the royalty and service fee shall be made to Company no later than the twentieth (20th) day of the calendar month following the calendar month for which the royalty and service fee is being paid. Such payment shall be accompanied by a gross sales report in a format prescribed by Company which shall specify the gross sales of the Franchise for the immediately preceding calendar month.
- C. Advertising Fee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees must pay a monthly royalty and service fee. This fee is calculated as five percent (5%) of the franchise's gross sales during each calendar month. This payment begins in the month the franchise opens and continues throughout the term of the franchise agreement.
The royalty and service fee is due no later than the 20th day of the month following the month for which the fee is being paid. For example, the royalty and service fee for January's gross sales would be due by February 20th. Franchisees must also submit a gross sales report in a format prescribed by B Bops, detailing the franchise's gross sales for the preceding month, along with their payment.
This ongoing royalty is a standard component of most franchise agreements, providing B Bops with a continuous revenue stream and aligning the franchisor's success with that of its franchisees. Prospective franchisees should carefully consider this ongoing expense when evaluating the potential profitability of a B Bops franchise, as it will directly impact their monthly operating costs.