Who determines the content of local advertising for Bhc franchisees?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
l program that Franchisor approves, including the "soft opening" to be held on or about the Opening Date and the grand opening event. Not later than 75 days after the Opening Date, Franchisee must provide Franchisor with a report itemizing Franchisee's expenditures on the grand opening advertising and promotion of Franchisee's Franchised BHC Restaurant. If you fail to meet the initial opening advertising and promotion, you will be required to add the shortage toward the Marketing and Promotion Fee.
- (d) Commencing with the third full calendar month after the Opening Date, Franchisee must (i) spend at least 1% of Franchisee's annual (January 1 through December 31) Gross Revenues on the local marketing, advertising, and promotion of Franchisee's Franchised BHC Restaurant, using marketing and promotional materials pre-approved or otherwise authorized in writing by Franchisor ("Local Advertising"). Franchisee must submit to Franchisor a Local Advertising plan which details the Local Advertising for the next 12-month period for Franchisor's approval.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisor has significant control over advertising content. While franchisees are required to engage in local advertising, Bhc pre-approves or authorizes the marketing and promotional materials used. Specifically, franchisees must submit a local advertising plan to Bhc for approval, detailing their advertising activities for the upcoming 12-month period.
This means that while franchisees have some autonomy in planning their local advertising, Bhc retains the right to ensure that all advertising aligns with the brand's overall marketing strategy and standards. Franchisees must also submit a marketing report to Bhc, detailing their local advertising expenditures, and must provide evidence to verify these expenditures.
Furthermore, Bhc determines the cost, form of media, content, format, production, timing, and location for regional or system-wide advertising, including advertising paid for from the Marketing and Promotion Fee contributions. This indicates that Bhc maintains control over the broader advertising strategy and implementation, ensuring consistency and brand integrity across all advertising efforts.
In summary, while Bhc franchisees are responsible for local advertising, the franchisor maintains significant control over the content and materials used, requiring pre-approval of advertising plans and providing specific guidelines for regional and system-wide campaigns.