Is Bhc currently requiring franchisees to pay the Marketing and Promotion Fee?
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.
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, franchisees are not currently required to pay the Marketing and Promotion Fee. The document states that Bhc is not requiring this contribution at this time because they do not anticipate brand marketing until there are at least 50 Bhc Restaurants in operation.
However, if Bhc starts to require payment of the Marketing and Promotion Fees, the fees collected from Bhc franchisees, less a 15% administration fee, will be spent for national and regional advertising and promotional campaigns. These campaigns are designed to promote and enhance the value of the Bhc trademarks and their general public recognition and acceptance. Bhc need not ensure that any particular franchisee benefits directly or proportionately from the Marketing and Promotion Fee.
Even though the Marketing and Promotion Fee is not currently being collected, franchisees are still required to spend money on advertising. Franchisees must spend between $10,000 and $13,000 on the initial opening advertising and promotion event within the first 60 days after opening. Beginning the 3rd full calendar month after opening, franchisees must spend at least 1% of their annual Gross Revenue on local advertising and promotion.