Is a Bft franchisee required to participate in all advertising and sales promotion programs?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must participate in all advertising and sales promotion programs that Franchisor may develop from time to time to promote and enhance the collective success of the System
Franchisor cannot require that the percentage of Gross Sales that Franchisee is required to contribute to the Fund, contribute to a Co-Op (as defined in Section 9.4), and spend on the Local Advertising Requirement (collectively, the "Required Marketing") exceed, in the aggregate, seven percent (7%) per month (the "Marketing Expenditure Cap"); provided, however, it is Franchisee's responsibility to provide Franchisor with written notice if the Required Marketing exceeds the Marketing Expenditure Cap, and until Franchisor receives Franchisee's written notice (the "Marketing Notice"), Franchisee will fully comply with the Required Marketing requirements, and no excess amounts will be refunded to Franchisee.
If the Required Marketing exceeds the Marketing Expenditure Cap, Franchisee may, after Franchisor receives Franchisee's Marketing Notice, reduce the Local Advertising Requirement, but only to the extent and for the time necessary to stay below the Marketing Expenditure Cap.
Franchisee must immediately return to full compliance with Required Marketing once the Marketing Expenditure Cap is no longer exceeded.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must participate in all advertising and sales promotion programs that Bft develops to promote the success of the system. However, Bft cannot require franchisees to contribute more than 7% of gross sales per month to the advertising fund, co-op, and local advertising combined.
If the required marketing expenses exceed this 7% cap, the franchisee must notify Bft in writing. Until Bft receives this notice, the franchisee must continue to comply with the marketing requirements. After providing notice, the franchisee can reduce their local advertising spending to stay within the cap.
Franchisees must return to full compliance with the required marketing contributions once the expenditure cap is no longer exceeded. This ensures that while franchisees are generally required to participate in all advertising programs, there is a limit to how much they can be required to spend, and a mechanism to adjust spending if necessary.