Under what conditions can B Bops revoke a waiver of the advertising fee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to pay Company an advertising fee equal to three percent (3%) of gross sales (as defined in Section 9(D) below) generated by the Franchise during each calendar month, beginning with the calendar month in which the Franchise opens for business and continuing for each subsequent calendar month during the Term hereof. Such fee shall be used by Company solely for development of advertising and promotional campaigns, which advertising and promotional campaigns shall be made available to Franchisee for implementation at its own expense in accordance with Section 10(D) hereof. Payments required under this Section shall be made together with the royalty and service fee payment and shall also be made to Company no later than twenty (20) days following the completion of the calendar month for which the advertising fee is being paid. Company may, in its sole discretion, elect to waive payment of all or a portion of the advertising fee provided for in this Section 9(C) for such period of time as Company may deem appropriate. Any such waiver may be revoked at such time as Company in its sole discretion may deem appropriate and Franchisee agrees to thereafter comply with this Section 9(C) in all respects. During any period of waiver of the entire fee, Company shall not be obligated to develop advertising and promotional campaigns for use by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops has the authority to revoke a waiver of the advertising fee at any time. The advertising fee is initially set at three percent of gross sales.
B Bops retains sole discretion to determine when it is appropriate to revoke a waiver. This means B Bops can change its decision regarding the waiver at any point.
If B Bops revokes the waiver, the franchisee must then comply with the standard advertising fee requirements. During any period when the advertising fee is waived entirely, B Bops is not required to develop advertising and promotional campaigns for the franchisee's use.