What were the total royalties for B Bops for the year ended December 31, 2024?
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 | ||||||||
| Professional Fees | $ | 22,283 | $ | 20,398 | $ | 20,472 | $ | 14,989 |
| Salaries | - | 100,000 | ||||||
| Payroll taxes | - | - | - | 1,450 | ||||
| Bank Charges | 572 | 502 | 504 | 519 | ||||
| Total Operating Expenses | $ | 22,855 | $ | 20,900 | $ | 20,976 | $ | 116,958 |
| Income From Operations | $ | 148,453 | $ | 132,344 | $ | 147,961 | $ | 38,372 |
| Other Income | ||||||||
| Interest Income | $ | 20,000 | $ | 9,599 | $ | 3,144 | $ | 3,506 |
| Total Other Income | $ | 20,000 | $ | 9,599 | $ | 3,144 | $ | 3,506 |
| Net Income | $ | 168,453 | $ | 141,943 | $ | 151,105 | $ | 41,878 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the total royalties for the year ended December 31, 2024, were $171,308. 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 they reflect the ongoing use of the B Bops brand, operational systems, and support services.
For a prospective B Bops franchisee, understanding the royalty structure is crucial. The FDD states that the transaction price for royalty fees is determined to be 5% of gross sales of the franchise each month. This means that franchisees must remit 5% of their monthly gross sales to B Bops as a royalty payment. This ongoing expense needs to be factored into the franchisee's financial projections and business plan.
The royalty amount can fluctuate based on the franchisees' sales performance. Higher sales will result in higher royalty payments to B Bops, while lower sales will decrease the royalty amount. Therefore, franchisees need to carefully manage their sales and expenses to ensure they can meet their royalty obligations while maintaining profitability. The $171,308 in royalties collected by B Bops in 2024 indicates the overall sales performance and health of the franchise system during that period.