What financial statements must Bhc advertising cooperatives prepare?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising cooperatives must prepare quarterly and annual financial statements, which need not be audited, and make them available to all cooperative members and us.
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, any advertising cooperatives formed by Bhc franchisees must prepare both quarterly and annual financial statements. These financial statements do not need to be audited.
These financial statements must be made available to all members of the cooperative, as well as to Bhc itself. This ensures transparency and allows both the franchisees and the franchisor to monitor the financial health and activities of the advertising cooperative.
This requirement is fairly standard in franchising, as advertising cooperatives manage funds contributed by franchisees for marketing purposes. Regular financial reporting helps to maintain accountability and ensures that funds are being used appropriately to benefit the franchisees' businesses. Franchisees should inquire about the specific format and content required for these financial statements to ensure compliance.