Can B Bops waive the advertising fee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Advertising Fee. 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 discretion to waive the advertising fee. Franchisees are typically required to pay an advertising fee equal to 3% of gross sales each calendar month. This fee is intended to be used by B Bops for the development of advertising and promotional campaigns, which are then made available to franchisees for implementation at their own expense.
However, B Bops retains the right to waive payment of all or a portion of this advertising fee. This waiver can be implemented for a period of time that B Bops deems appropriate. B Bops also has the right to revoke any such waiver at its discretion, at which point the franchisee would once again be obligated to pay the advertising fee.
During any period where the advertising fee is entirely waived, B Bops is not obligated to develop advertising and promotional campaigns for use by the franchisee. This means that while a franchisee might save money on the advertising fee in the short term, they may also miss out on the benefits of corporate-level advertising and promotional support. Prospective franchisees should inquire about the conditions under which B Bops might waive the advertising fee and how often such waivers have been granted in the past.