Is B Bops required to develop advertising materials if the advertising fee is waived?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company will not, however, be required to develop and provide advertising and promotional materials to you during any period in which the Company has elected to waive payment of the advertising fee in whole by you and the other franchisees. (Section 11(A) of the Franchise Agreement) Additional information concerning advertising is set forth below in this Item 11.
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- The Company will make a minimum of two (2) trips per year to the Franchise for purposes of providing on-site support and advisory services to you for the proper operation of the Franchise. (Section 11(B) of the Franchise Agreement)
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- The Company will provide you with such advice and guidance regarding the proper operation of the Franchise as the Company may in its discretion deem appropriate.
Such assistance will generally consist of consultation and advice regarding standard operating procedures for the Franchise, specific operating problems you may encounter, analysis of your financial reports and implementation of advertising and promotional campaigns. Such assistance will typically be provided through telephone conferences, updates to the Operations Manual, written reports or memoranda and on-site support trips made by the Company. (Section 11(C) of the Franchise Agreement)
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- The Company will inform you on a timely basis of any modifications, additions or other revisions of the Licensed System or of the Operations Manual or of other developments affecting your B-Bop's Restaurant. Such information will generally be distributed to you in the form of periodic updates to the Operations Manual or through other written reports or memoranda. Such information shall remain the exclusive and confidential property of the Company and must be returned to the Company immediately in the event the Franchise is for any reason terminated or expires. (Section 11(D) of the Franchise Agreement)
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- The Company will provide additional training to you or your employees. A fee of up to $2,000 may be charged by the Company for such additional training. (Section 11(E) of the Franchise Agreement)
Company Advertising Program. As noted in Item 6 of this disclosure document, you are required under the terms of the Franchise Agreement to pay the Company a monthly advertising fee equal to three percent (3%) of the gross sales of your Franchise. The Company, however, reserves the right to waive payment of all or part of the advertising fee by you and other franchisees for such period as the Company may in its discretion deem appropriate. Any waiver will be communicated to you, in writing, and may be revoked at such time as the Company, in its sole discretion, deems appropriate. Upon revocation of any waiver, you and the other franchisees will be required to commence payment of the advertising fee.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops is not required to develop advertising and promotional materials if they have elected to waive the advertising fee. B Bops reserves the right to waive the advertising fee, which is 3% of gross sales, for a period that they deem appropriate. This waiver must be communicated in writing and can be revoked at any time at B Bops's discretion.
Currently, B Bops plans to waive the advertising fee until the income from franchise sales is sufficient to finance advertising and promotional campaigns. However, even if the advertising fee is waived, franchisees are still required to spend a minimum of 2% of their gross sales on independent advertising each quarter.
This independent advertising can include campaigns provided by B Bops when they are required to provide advertising materials, or franchisees can create their own advertising, which must be approved by B Bops before use. Franchisees may also be required to submit an independent advertising report with supporting invoices as directed by B Bops. Therefore, even if B Bops waives the advertising fee, franchisees must still allocate funds for local advertising efforts.