When is the Bft Local Advertising Requirement payable?
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 payable monthly with your 1st Royalty payment each month. The amount due is the greater of (a) $1,500 or (b) 2% of the prior month’s Gross Sales.
Bft franchisees should note that while this is a spending requirement, Bft reserves the right to have you pay this amount to them directly rather than spending it yourself. Bft also retains the right to adjust the amount of your required spending, subject to a Marketing Expenditure Cap.
It's important to be aware of the Marketing Expenditure Cap, which limits the total percentage of Gross Sales that Bft can require you to contribute to the Brand Development Fund, Regional or Local Advertising Co-Op, and spend on the Local Advertising Requirement. This total cannot exceed 7% per month. If the Required Marketing exceeds this cap, you must provide written notice to Bft. After Bft receives this notice, you may reduce your Local Advertising Requirement to stay below the cap. However, you must return to full compliance with the Required Marketing once the cap is no longer exceeded.