What happens to the money in the Bhc fund if it is terminated?

According to Bhc's 2025 Franchise Disclosure Document, while Bhc intends for the Marketing and Promotion Fund to be perpetual, Bhc can terminate it. However, Bhc is not allowed to terminate the fund until all the money in it has been spent for advertising and promotional purposes. This provides some assurance to franchisees that their contributions to the fund will be used as intended before the fund's potential termination.

This policy ensures that franchisees' contributions are used for their intended purpose, which is advertising and promotion, before the fund can be terminated. It prevents Bhc from simply dissolving the fund and reallocating the remaining money for other purposes. This is a fairly standard practice in franchising, as advertising funds are typically meant to benefit the entire franchise system.

However, it is important to note that Bhc has broad discretion over how the money in the fund is spent, as they "need not ensure that any particular franchisee benefits directly or proportionately from the Marketing and Promotion Fee." This means that while the money will be used for advertising and promotion, there is no guarantee that it will directly benefit any specific franchisee's location or market. Franchisees should consider this when evaluating the potential return on their investment in the Marketing and Promotion Fund.