Who is responsible for the expense of disseminating B Bops advertising?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
If and when the Company determines to invoke payment of the advertising fee by you and other franchisees, such fees will be deposited by the Company into a special fund to be administered by the Company and used to finance the development and production of advertising for the B-Bop's Restaurant system. The Company will thereafter be responsible for developing and producing advertising materials to be made available to you and other franchisees for dissemination at your own expense as part of the independent advertising expenditure requirement. All decisions regarding the content, concepts, materials and media utilized in such advertising will be made by the Company in its sole discretion. It is currently anticipated that advertising will be developed for dissemination over radio and television and through print. Since you will be responsible for the expense of disseminating the advertising (including all
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, franchisees are responsible for the expenses associated with disseminating advertising materials. While B Bops will develop and produce advertising materials, franchisees must cover the costs of distributing these materials. This includes all media, printing, and mailing expenses. Therefore, the coverage of the advertising will likely be local, directly benefiting the franchisee's location.
B Bops collects an advertising fee equal to three percent (3%) of the gross sales of your Franchise, but may waive this fee until there are enough franchise locations to finance advertising and promotional campaigns. Even if the fee is waived, franchisees are still required to handle the independent advertising expenditure. All decisions regarding the content, concepts, materials, and media utilized in such advertising will be made by B Bops in its sole discretion.
B Bops anticipates that its own restaurants will also contribute to the advertising fund at the same rate as franchisees. The FDD indicates that B Bops does not plan to audit the fund annually but expects to provide an annual report to franchisees detailing the fund's receipts and expenditures. The company also states that it will not use any portion of the advertising fees to solicit new franchise sales.