What is the deadline for Bhc to provide a Master Franchisee with a statement of receipts and expenditures of the aggregate Marketing and Promotion Fees relating to the preceding calendar year, 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 31st of any calendar year, Bhc will provide the Master Franchisee with a statement of receipts and expenditures of the aggregate Marketing and Promotion Fees relating to the preceding calendar year no later than May 31st of the same year. This statement will be certified as correct by one of Bhc's officers.
This means that a Master Franchisee needs to be proactive in requesting this information from Bhc within the specified timeframe to receive a detailed report on how the Marketing and Promotion Fees were utilized in the previous year. The 15% administration fee that Bhc deducts from the Marketing and Promotion Fees is also relevant, as the statement would reflect the expenditures after this deduction.
This level of transparency can be beneficial for Master Franchisees, allowing them to understand how their contributions to the Marketing and Promotion Fund are being used to support the Bhc brand. It also allows them to assess whether the expenditures align with the intended purposes of enhancing the value of the Bhc trademarks and promoting public recognition and acceptance.