What is the minimum 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, franchisees are required to meet a Local Advertising Requirement. This requirement is the greater of (a) $1,500 or (b) 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 have franchisees pay this amount to them rather than spending it independently. Bft also reserves the right to adjust the amount of required spending, subject to a Marketing Expenditure Cap.
Bft also has a Marketing Expenditure Cap, which limits the total amount a franchisee is required to spend on marketing. This cap includes contributions to the Brand Development Fund, Regional or Local Advertising Co-Ops, and the Local Advertising Requirement. The total cannot exceed 7% of Gross Sales per month. If a franchisee's Required Marketing exceeds this cap, they must notify Bft in writing. Until Bft receives this notice, the franchisee must continue to comply with the original marketing requirements.
After providing written notice, a franchisee may reduce their Local Advertising Requirement to stay within the Marketing Expenditure Cap. However, this reduction is only allowed to the extent and for the time necessary to remain below the cap. Once the Marketing Expenditure Cap is no longer exceeded, the franchisee must immediately return to full compliance with the original Required Marketing, including the Local Advertising Requirement.
Prospective franchisees should carefully consider these requirements and how they might impact their business. It is important to factor in potential fluctuations in Gross Sales, as this will directly affect the Local Advertising Requirement. Additionally, franchisees should be prepared to track their marketing expenses and provide written notice to Bft if they approach the Marketing Expenditure Cap to avoid overspending.