Is Bhc currently obligated to conduct advertising for the franchise system?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) We have no obligation to conduct advertising.
If we conduct advertising, you must pay us a Marketing and Promotion Fee of 2.5% of your monthly Gross Revenue (section 4.4(a) of the MFA).
However, we are not requiring this contribution at this time because we do not anticipate brand marketing until we have at least 50 BHC Restaurants in operation.
Once BHC starts to require payment, Marketing and Promotion Fees collected from BHC 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.
We need not ensure that any particular franchisee benefits directly or proportionately from the Marketing and Promotion Fee.
- (ii) We will provide general advertising programs and sales promotion, campaign, and sample advertising materials.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc is not currently obligated to conduct advertising for the franchise system. The FDD states that Bhc has no obligation to conduct advertising. However, if Bhc does conduct advertising, franchisees must pay a Marketing and Promotion Fee of 2.5% of their monthly Gross Revenue.
Currently, Bhc is not requiring this 2.5% contribution because they do not anticipate brand marketing until there are at least 50 Bhc Restaurants in operation. Once Bhc starts requiring the fee, the collected Marketing and Promotion Fees, minus a 15% administration fee, will be used for national and regional advertising and promotional campaigns.
Bhc will provide general advertising programs and sales promotion, campaign, and sample advertising materials. Bhc also reserves the right to conduct collective/national campaigns via local social media on the franchisee's behalf. Franchisees are not permitted to promote a Master Franchised Bhc Restaurant or use any of the Marks in any manner on any social or networking websites, such as Facebook, LinkedIn, or Twitter, without Bhc's prior written consent.
Prospective franchisees should note that while Bhc is not currently obligated to conduct advertising, this may change in the future, particularly once the number of Bhc restaurants in operation increases. Franchisees should factor in the potential cost of the 2.5% Marketing and Promotion Fee when evaluating the financial feasibility of the franchise.