If Bhc dissolves all advertising cooperatives, what happens to centralized group advertising activities?

According to Bhc's 2025 Franchise Disclosure Document, if Bhc dissolves all advertising cooperatives, it may determine that it is preferable to centralize all group advertising activities under the Marketing and Promotion Fee. Bhc may dissolve a cooperative when it simultaneously dissolves all advertising cooperatives.

This means that instead of franchisees participating in regional or local advertising cooperatives, Bhc could centralize advertising efforts and manage them through the Marketing and Promotion Fee. This fee is a percentage of the franchisee's monthly Gross Revenue. Currently, Bhc does not require this contribution because it does not anticipate brand marketing until there are at least 50 Bhc restaurants in operation.

If Bhc centralizes advertising, franchisees would lose direct control over local advertising strategies managed by the cooperatives. However, they would still be required to spend at least 1% of their annual Gross Revenue on local advertising and promotion using marketing and promotional materials pre-approved by Bhc. This shift could impact how effectively advertising dollars are spent in specific markets, as Bhc would make the ultimate decisions on advertising allocation and strategy.