Does Bhc currently require Master Franchisees to participate in a local or regional advertising cooperative?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
At this time, there is no advertising council of Master Franchisees that advises us regarding advertising and promotional programs or policies for BHC Restaurants generally. Franchisor does not currently require Master Franchisees to participate in a local or regional advertising cooperative. No local or regional advertising cooperative exists in Franchisor's system at this time.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc does not currently require Master Franchisees to participate in a local or regional advertising cooperative. Additionally, there are no local or regional advertising cooperatives within the Bhc system at this time. This indicates that Master Franchisees are not obligated to pool their advertising funds with other franchisees in their area for coordinated advertising campaigns.
However, the FDD also states that commencing with the third full calendar month after the Opening Date, Master Franchisees must spend at least 1% of their annual Gross Revenues on local marketing, advertising, and promotion of their BHC Restaurant. These local advertising plans require Franchisor approval.
While participation in an advertising cooperative is not mandatory, Master Franchisees are still required to engage in local advertising efforts and may be subject to additional assessments for special advertising or promotional activities on a regional or system-wide basis if two-thirds of all affected franchised BHC Restaurants agree by affirmative vote.