Is interest imputed for the benefit of Bhc Master Franchisee or payable to the Master Franchisee on unexpended Marketing and Promotion Fees?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) In Franchisor's sole discretion and as Franchisor deems appropriate, Franchisor will expend, for the purposes of national, regional or local marketing, advertising, market research, public relations and promotional campaigns designed to promote and enhance the value of the Marks and general public recognition and acceptance thereof, an amount equal to the aggregate Marketing and Promotion Fees stated in section 4.4 hereof and collected from all of its Master Franchisees less a 15% administration fee. No interest on unexpended Marketing and Promotion Fees will be imputed for Master Franchisee's benefit or payable to Master Franchisee. If requested by Master Franchisee in writing not later than March 31 of any calendar year, Franchisor will provide Master Franchisee no later than May 31 of the same calendar year with a statement of receipts and expenditures of the aggregate Marketing and Promotion Fees relating to the preceding calendar year, certified to be correct by one of Franchisor's officers.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, no interest is imputed for the benefit of the Master Franchisee, nor is it payable to the Master Franchisee, on any unexpended Marketing and Promotion Fees. Bhc will expend an amount equal to the aggregate Marketing and Promotion Fees collected from all of its Master Franchisees, less a 15% administration fee, for marketing, advertising, market research, public relations, and promotional campaigns. These campaigns are designed to promote and enhance the value of the Marks and general public recognition.
Bhc retains sole discretion in how these Marketing and Promotion Fees are spent. The funds are used for national, regional, or local marketing efforts that Bhc deems appropriate. This includes various marketing techniques and programs aimed at promoting the Bhc brand and the retail sale of Bhc products.
If a Master Franchisee requests it in writing by March 31 of any calendar year, Bhc will provide a statement of receipts and expenditures of the aggregate Marketing and Promotion Fees relating to the preceding calendar year no later than May 31 of the same year. This statement will be certified as correct by one of Bhc's officers, providing some transparency regarding how the fees are utilized.