If Bhc decides to use a public figure, will the franchisees have to pay additional fees?

According to Bhc's 2025 Franchise Disclosure Document, franchisees may be required to pay additional fees for advertising or promotional activities under certain conditions. Specifically, Bhc may impose an additional assessment upon affected 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. This implies that if Bhc decided to use a public figure in advertising, and if it were considered a 'special designated advertising or promotional activit[y],' franchisees could be assessed an additional fee, but only if two-thirds of the affected franchisees agree.

This additional assessment is not mandatory, and franchisees have a say in whether or not it is implemented. This provides a safeguard, ensuring that franchisees are not unilaterally burdened with extra costs for marketing initiatives they may not support. The funds from the Marketing and Promotion Fees, collected from franchisees, are used for national, regional, or local marketing, advertising, market research, public relations, and promotional campaigns. These campaigns are designed to promote and enhance the value of the Bhc trademarks and their general public recognition and acceptance.

Bhc retains the discretion to determine the specifics of these advertising campaigns, including the cost, media, content, and timing. However, the use of additional assessments is subject to the approval of two-thirds of the affected franchisees, providing a balance between the franchisor's marketing control and the franchisees' financial interests. This structure is fairly common in franchising, where franchisors often have significant control over marketing but may also involve franchisees in decisions about additional fees or assessments.