What certification is required for the statement of receipts and expenditures of aggregate Marketing and Promotion Fees provided to a Bhc Master Franchisee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
If requested by Master Franchisee in writing not later than March 31 of any calendar year, Franchisor will provide Master Franchisee no later than May 31 of the same calendar year with a statement of receipts and expenditures of the aggregate Marketing and Promotion Fees relating to the preceding calendar year, certified to be correct by one of Franchisor's officers.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a Master Franchisee requests in writing by March 31st of any calendar year, Bhc will provide them with a statement of receipts and expenditures of the aggregate Marketing and Promotion Fees relating to the preceding calendar year. This statement must be certified as correct by one of Bhc's officers.
This means that the statement provided to the Master Franchisee does not need to be certified by a third-party accountant or other financial professional. Instead, an officer of Bhc attests to the accuracy of the document.
This arrangement is less rigorous than requiring an independent audit, which is sometimes seen in franchising. A franchisee may want to consider the potential implications of relying on a statement certified by an internal officer rather than an independent source. It is important to note that the marketing and promotion fees, once collected from Bhc Master Franchisees, less a 15% administration fee, will be spent for national and regional advertising and promotional campaigns designed to promote and enhance the value of the Bhc trademarks and their general public recognition and acceptance.