Are B Bops Restaurants owned by B Bops required to contribute to the advertising fund?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
It is anticipated that the B-Bop's Restaurants owned by B-Bop's will also be required to contribute to the advertising fund on the same basis and at the same rate as you and the other franchisees.
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 Restaurants owned by B Bops are expected to contribute to the advertising fund. The FDD states that it is anticipated that these restaurants will be required to contribute to the advertising fund on the same basis and at the same rate as franchisees. This contribution would occur if and when B Bops decides to invoke payment of the advertising fee.
The advertising fee is intended to finance the development and production of advertising for the B Bops Restaurant system. B Bops will manage the fund and decide on the advertising content, concepts, materials, and media. The advertising is expected to be local, benefiting the franchisee directly, since the franchisee is responsible for the dissemination expenses.
Currently, B Bops plans to waive the advertising fee until enough franchises are sold to generate sufficient income for advertising and promotional campaigns. During this waiver period, B Bops is not obligated to produce advertising. However, franchisees must still cover independent advertising expenditures. There is no guarantee that B Bops will sell enough franchises to start the advertising fund. Franchisees are required to pay a monthly advertising fee equal to three percent (3%) of the gross sales of their Franchise.