When is the royalty and service fee due for a single-unit B Bops arrangement?

According to B Bops's 2025 Franchise Disclosure Document, the royalty and service fee for a single-unit franchise is 5% of gross sales. This fee is payable monthly, specifically on the 20th day of each month. Gross sales are defined as the total revenue from all food, beverage, and promotional item sales, whether in cash or credit, excluding sales taxes collected and remitted to the government.

This monthly royalty payment is a standard practice in the franchise industry, allowing B Bops to collect ongoing revenue based on the franchisee's sales performance. Franchisees should factor this ongoing cost into their financial projections and ensure they have sufficient cash flow to meet this obligation. Failing to make timely payments can result in late fees and interest charges, as detailed elsewhere in the FDD.

It is important for prospective B Bops franchisees to understand how 'gross sales' is defined, as this forms the basis for calculating the royalty fee. Franchisees should maintain accurate records of their sales and ensure timely submission of payments to avoid penalties. The consistent monthly payment schedule requires careful financial planning and management to ensure compliance with the franchise agreement.