Does Bhc currently require franchisees to participate in a local or regional advertising cooperative?

According to Bhc's 2025 Franchise Disclosure Document, franchisees are not currently required to participate in a local or regional advertising cooperative. The FDD states that there is no advertising council of franchisees that advises Bhc regarding advertising and promotional programs, and no local or regional advertising cooperative exists within the Bhc system at this time. This means that franchisees are not obligated to contribute to or participate in any cooperative advertising efforts.

This lack of required participation in advertising cooperatives could be seen as a benefit for franchisees, as it allows them more control over their local advertising strategies and budgets. Franchisees are responsible for paying expenses for local marketing directly to vendors. However, it also means that franchisees may not benefit from the collective buying power or coordinated campaigns that a cooperative could provide.

It is important to note that Bhc does charge a Marketing and Promotion Fee of 2.5% of Gross Revenue, but they are not requiring this contribution at this time because they do not anticipate brand marketing until they have at least 50 Bhc Restaurants in operation. Bhc reserves the right to require payment of this fee once they have more than 50 Bhc Restaurants in operation. Prospective franchisees should inquire about Bhc's plans for future advertising cooperatives and the potential impact on franchisees' advertising strategies and costs.