How often is B Bops royalty income recognized per the agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue is also recognized over time as the royalty income per the contract is based on a percentage of gross sales of the franchise and is recognized on a monthly basis when they are earned per the agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, royalty income is recognized monthly. Specifically, B Bops recognizes revenue over time as the royalty income, which is based on a percentage of gross sales, is earned per the agreement. This recognition occurs on a monthly basis.
For a prospective B Bops franchisee, this means that the royalty fees, calculated as 5% of gross sales each month, are recognized by B Bops as revenue on a monthly basis. This aligns with typical franchise agreements where royalties are paid regularly based on sales performance.
This consistent monthly recognition of royalty income provides B Bops with a steady stream of revenue tied directly to the sales performance of its franchisees. Franchisees should ensure they understand how gross sales are calculated and reported to ensure accurate royalty payments.