What is the formula for calculating the Local Advertising Requirement for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Advertising Requirement | The greater of (a) $1,500 or (b) 2% of the prior month’s Gross Sales 1 | Payable monthly with your 1st Royalty payment each month | This is a spending requirement, but we reserve the right to have you pay this amount to us rather than spending it yourself. We may, on notice to you, adjust the amount of your required spending, subject to the Marketing Expenditure Cap. 3 |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Local Advertising Requirement is the greater of two amounts: $1,500 or 2% of the prior month’s Gross Sales. This amount is payable monthly along with the first Royalty payment of each month. However, Bft retains the right to collect this amount directly from the franchisee instead of requiring the franchisee to spend it themselves.
Bft also retains the right to adjust the Local Advertising Requirement with notice to the franchisee, but this is subject to a Marketing Expenditure Cap. The Required Marketing includes contributions to the Brand Development Fund, contributions to a Regional or Local Advertising Co-Op, and the Local Advertising Requirement. The Marketing Expenditure Cap limits the total Required Marketing to 7% of Gross Sales per month.
If the total Required Marketing exceeds 7% of Gross Sales, the franchisee must provide written notice to Bft. After providing this notice, the franchisee can reduce their Local Advertising Requirement to remain below the Marketing Expenditure Cap. Once the total Required Marketing falls below the 7% threshold, the franchisee must immediately return to full compliance with the original Local Advertising Requirement.