conditional

If Bhc decides to use a public figure, will the franchisees have to participate in joint advertising?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

additional assessment upon affected Master Franchisees for special designated advertising or promotional activities if two-thirds of all affected franchised BHC Restaurants agree to such additional assessment by affirmative vote.

  • (f) Master Franchisee must fully participate with any gift card, customer loyalty, referral and other contests and promotions Franchisor arranges for, requires, or authorizes BHC Master Franchisees to participate in. Details regarding such contests and promotions will be set forth in the Operations Manual.
  • (g) Franchisor determines the cost, form of media, content, format, production, timing (including regional or local concentration and seasonal exposure), location and all other matters relating to regional or system-wide advertising (including advertising paid from Marketing and Promotion Fee contributions), public relations and promotional campaigns.
  • (h) Master Franchisee agrees to participate in all BHC promotions described in Franchisor's website and all Franchisor-authorized charitable fundraising and group discount programs.

Source: Item 18 — Public Figures (FDD page 49)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, franchisees are generally required to participate in system-wide promotions. Specifically, franchisees must participate in any gift card, customer loyalty, referral, and other contests and promotions that Bhc arranges, requires, or authorizes. Details about these contests and promotions are outlined in the Operations Manual. This suggests that if Bhc uses a public figure in a promotion, franchisees would likely be required to participate. Franchisees must also participate in all Bhc promotions described on Bhc's website and all franchisor-authorized charitable fundraising and group discount programs.

Bhc determines various aspects of regional or system-wide advertising, including cost, media, content, format, production, timing, location, and other related matters. This control extends to advertising paid for from Marketing and Promotion Fee contributions, public relations, and promotional campaigns. Bhc also reserves the right to conduct collective or national campaigns via local social media on behalf of franchisees.

Additionally, Bhc may impose an additional assessment upon affected franchisees for special designated advertising or promotional activities on a regional or system-wide basis. However, this is contingent upon two-thirds of all affected franchised Bhc Restaurants agreeing to such additional assessment through an affirmative vote. This provides a mechanism for franchisees to have a say in additional advertising expenditures, even if the initial decision to use a public figure is made by Bhc.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.