By what date will the Franchisor provide the Bhc Master Franchisee with a statement of receipts and expenditures of the aggregate Marketing and Promotion Fees if requested?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) In Franchisor's sole discretion and as Franchisor deems appropriate, Franchisor will expend, for the purposes of national, regional or local marketing, advertising, market research, public relations and promotional campaigns designed to promote and enhance the value of the Marks and general public recognition and acceptance thereof, an amount equal to the aggregate Marketing and Promotion Fees stated in section 4.4 hereof and collected from all of its Master Franchisees less a 15% administration fee. No interest on unexpended Marketing and Promotion Fees will be imputed for Master Franchisee's benefit or payable to Master Franchisee. 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 31 of any calendar year, Bhc will provide a statement of receipts and expenditures of the aggregate Marketing and Promotion Fees relating to the preceding calendar year. This statement will be provided no later than May 31 of the same calendar year and will be certified as correct by one of Bhc's officers.
This means that a Bhc Master Franchisee needs to be proactive in requesting this information. The request must be submitted in writing almost two months before the statement is due. This allows Bhc time to compile the necessary financial data and have it certified.
This is a fairly standard practice in franchising, allowing franchisees to see how marketing fees are being spent. The 15% administration fee that Bhc deducts from the gross Marketing and Promotion Fees is also a fairly common practice to cover their administrative costs.