What is B Bops' obligation to develop or produce advertising during a period when the advertising fee is waived?

According to B Bops' 2025 Franchise Disclosure Document, during any period that B Bops has determined to waive payment of the advertising fee in whole, B Bops will not be obligated to develop or produce advertising on behalf of franchisees. However, franchisees are still required to observe the independent advertising expenditure, which is 2% of gross sales. This waiver will be communicated in writing and may be revoked at any time at B Bops' discretion. Upon revocation, franchisees must commence payment of the advertising fee.

This means that while B Bops may choose to suspend the advertising fee, relieving franchisees of that particular cost, it also removes B Bops' obligation to provide advertising and promotional materials. The franchisee is still responsible for their independent advertising expenditure. This could place a greater burden on the franchisee to develop their own advertising strategies and materials, or to pay for the implementation of advertising campaigns if B Bops provides them, even without collecting the advertising fee.

B Bops currently plans to waive the advertising fee until the number of franchises sold provides sufficient advertising fee income to finance advertising and promotional campaigns. However, there are no assurances that B Bops will sell a sufficient number of franchises to commence operation of the advertising fund. This creates uncertainty for franchisees, as the duration of the waiver is not guaranteed and depends on B Bops' franchise sales performance.

Prospective franchisees should inquire about B Bops' long-term plans for the advertising fund, the criteria for reinstating the advertising fee, and the level of support and resources that will be available to franchisees for independent advertising during any waiver period. Understanding these factors will help franchisees better plan their marketing strategies and budgets.