Who is responsible for paying the cost of implementing advertising for a B Bops franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company will, during any period when it requires you and the other franchisees to pay all or part of the advertising fee, develop advertising, promotional and public relations campaigns to promote the B-Bop's Restaurant system. You are, however, responsible for paying the cost of implementing such advertising as part of the independent advertising expenditure requirement. 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.
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 costs of implementing advertising. While B Bops may develop advertising, promotional, and public relations campaigns, the franchisee is responsible for paying the cost of implementing such advertising as part of the independent advertising expenditure requirement.
B Bops collects a monthly advertising fee equal to three percent (3%) of the gross sales of the franchise, but they reserve the right to waive this fee. During any period that B Bops waives the advertising fee, they are not obligated to develop or produce advertising on behalf of the franchisees. However, franchisees are still required to observe the independent advertising expenditure, which requires them to spend a minimum of two percent (2%) of their gross sales on independent advertising each quarter.
B Bops will develop and produce advertising materials to be made available to franchisees for dissemination at their own expense. The coverage of this advertising will likely be local to directly benefit the franchise. Franchisees are responsible for the expense of disseminating the advertising, including all media, printing, and mailing expenses. B Bops has not established an advertising council of franchisees or any local or regional advertising cooperative.