Under what condition is B Bops not required to develop advertising and promotional materials?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Company Advertising Program. As noted in Item 6 of this disclosure document, you are required under the terms of the Franchise Agreement to pay the Company a monthly advertising fee equal to three percent (3%) of the gross sales of your Franchise. The Company, however, reserves the right to waive payment of all or part of the advertising fee by you and other franchisees for such period as the Company may in its discretion deem appropriate. Any waiver will be communicated to you, in writing, and may be revoked at such time as the Company, in its sole discretion, deems appropriate. Upon revocation of any waiver, you and the other franchisees will be required to commence payment of the advertising fee. The Company currently plans to waive payment of the advertising fee in whole until such time as the number of franchises sold will provide advertising fee income sufficient to finance the development of advertising and promotional campaigns. During any period that the Company has determined to waive payment of the advertising fee in whole, the Company will not be obligated to develop or produce advertising on behalf of you or the other franchisees. You will, however, be required to continue to observe the independent advertising expenditure discussed below. No assurances can be given that the Company will sell a sufficient number of Franchises to commence operation of the advertising fund.
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 is not required to develop and provide advertising and promotional materials to franchisees if the company has elected to waive payment of the advertising fee in whole by franchisees.
B Bops reserves the right to waive the monthly advertising fee of three percent (3%) of gross sales. This waiver is at the discretion of B Bops and will be communicated in writing to franchisees. The waiver can be revoked when B Bops deems appropriate, at which point franchisees must resume paying the advertising fee.
Currently, B Bops plans to waive the advertising fee until the income from franchise sales is sufficient to finance advertising and promotional campaigns. However, even if the advertising fee is waived, franchisees are still required to spend a minimum of two percent (2%) of their gross sales on independent advertising each quarter. There is no guarantee that B Bops will sell enough franchises to start the advertising fund.