What level of agreement is required from affected Bhc franchisees for an additional advertising assessment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) On a regional or system-wide basis, Franchisor 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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisor may impose an additional advertising assessment on a regional or system-wide basis for special designated activities. However, this is contingent upon securing agreement from franchisees.
Specifically, two-thirds of all affected franchised Bhc restaurants must agree to the additional assessment through an affirmative vote. This indicates that a significant majority of franchisees need to be on board before such an assessment can be implemented.
This requirement provides a degree of protection for franchisees, ensuring that they have a voice in decisions regarding additional advertising expenditures. It also suggests that Bhc values consensus and collaboration within its franchise system, at least when it comes to financial contributions for advertising initiatives.