Under what conditions can a Bft franchisee reduce the Local Advertising Requirement if the Required Marketing exceeds the Marketing Expenditure Cap?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
You must provide us with written notice if the Required Marketing exceeds the Marketing Expenditure Cap, and until we receive your Marketing Notice, you must comply with the Required Marketing requirements, and no excess amounts will be refunded to you. If the Required Marketing exceeds the Marketing Expenditure Cap, you may, after we receive your Marketing Notice, reduce the Local Advertising Requirement, but only to the extent and for the time necessary to stay below the Marketing Expenditure Cap. You must immediately return to full compliance with Required Marketing once the Marketing Expenditure Cap is no longer exceeded.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee may reduce their Local Advertising Requirement if the Required Marketing exceeds the Marketing Expenditure Cap. However, the franchisee must first provide Bft with written notice that the Required Marketing exceeds the Marketing Expenditure Cap. Until Bft receives this notice, the franchisee must continue to comply with the Required Marketing requirements, and no excess amounts will be refunded.
After providing the required written notice, the franchisee can reduce the Local Advertising Requirement only to the extent and for the time necessary to stay below the Marketing Expenditure Cap. This reduction is not indefinite; the franchisee must return to full compliance with the Required Marketing once the Marketing Expenditure Cap is no longer exceeded.
This clause protects the franchisee from excessive marketing costs while ensuring Bft is informed and that marketing efforts are only reduced as much as necessary. It is important for prospective Bft franchisees to understand the terms of 'Required Marketing' and 'Marketing Expenditure Cap' as defined in their Franchise Agreement to effectively manage their advertising expenses and maintain compliance.