What happens if a Bhc franchisee advertises prices inconsistent with recommended prices?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Bhc may recommend retail prices for specific Bhc products and other products and services authorized for sale at a Bhc Restaurant. If Bhc recommends retail prices, franchisees may not advertise or promote retail prices inconsistent with these recommended prices, whether through telephone, printed materials, or any other media, including social media.
Furthermore, to the extent permitted by federal and state law applicable to the franchised Bhc Restaurant, Bhc may designate maximum and minimum retail prices to be charged for Bhc Products. This means Bhc can set both the highest and lowest prices a franchisee can charge, provided it complies with applicable laws.
This policy aims to maintain uniformity in the delivery of goods and services to retail customers and to strengthen Bhc's brand in inter-brand competition. By controlling price advertising, Bhc seeks to ensure a consistent brand image and customer experience across all franchise locations. Franchisees must adhere to these pricing guidelines to avoid violating the franchise agreement.