What were the royalties for B Bops for the year ended December 31, 2023?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
2021
| _ | 2024 | 2023 | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|---|---|
| Operating Revenue | ||||||||
| Royalties | 1 | 171,308 | _ | 153,244 | 168,937 | _ | 155,330 | |
| Total Operating Revenue | , $ | 171,308 | $ | 153,244 | $ | 168,937 | $ | 155,330 |
| Operating Expenses |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the royalties for the year ended December 31, 2023, were $153,244. This figure represents the income B Bops Franchising Corporation received from its franchisees based on a percentage of their gross sales. Royalties are a primary revenue stream for franchisors like B Bops, as franchisees are obligated to pay a percentage of their gross sales in exchange for the continued use of the B Bops brand name, operational support, and other benefits conferred by the franchise agreement.
For a prospective B Bops franchisee, understanding the royalty structure is crucial. The FDD states elsewhere that the royalty fee is 5% of gross sales each month. The $153,244 in royalties collected during 2023 reflects the total amount paid by all franchisees to B Bops for that year. This figure can be used to gauge the overall performance and revenue generation of the B Bops franchise system.
It's important to note that this royalty income is distinct from other potential revenue streams for B Bops, such as initial franchise fees paid by new franchisees. The royalty payments represent ongoing revenue tied directly to the sales performance of the individual franchise locations. Franchisees should carefully consider the royalty structure and its potential impact on their profitability when evaluating a B Bops franchise opportunity.