Can a Bhc franchisee advertise prices inconsistent with recommended prices?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) To protect and maintain the integrity, reputation and goodwill of the System and the Marks, Franchisor requires that Master Franchisee comply, and ensure that Subfranchisees comply, with the methodology Franchisor prescribes in providing BHC Products to customers.
To enhance uniformity in the delivery of goods and services to retail customers by Franchisor's Master Franchisees and the strength of Franchisor's Marks in inter-brand competition, and subject to applicable federal and state antitrust laws, Franchisor may recommend retail prices for specific BHC Products and other products and services Franchisor authorize for sale at a BHC Restaurant.
If Franchisor does so, Master Franchisee may not, and ensure that Subfranchisees do not, advertise or promote (whether by telephone, printed materials, or any other media, including social media) retail prices that are inconsistent with these recommended prices.
Also, to the extent permitted by federal and state law applicable to the BHC Restaurant, Franchisor may designate maximum and minimum retail prices to be charged for BHC Products.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee's ability to advertise prices inconsistent with Bhc's recommendations is restricted. Bhc may recommend retail prices for its products and services to maintain uniformity and brand strength.
If Bhc provides recommended prices, franchisees are prohibited from advertising or promoting retail prices (via any medium, including social media) that deviate from these recommendations. Additionally, where permitted by law, Bhc can designate maximum and minimum retail prices for Bhc products.
This policy aims to protect the integrity, reputation, and goodwill of the Bhc system and marks. It also seeks to enhance uniformity in the delivery of goods and services and strengthen Bhc's brand in the market. Franchisees must adhere to Bhc's prescribed methodology for providing products to customers.