What level of effort must a Bhc franchisee devote to the promotion and development of their franchised restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) At all times, and subject to applicable state law and regulations, Franchisee must be, or employ, a General Manager who will devote his or her entire time during normal business hours, as defined in the Operations Manual, to the management, operation, and development of the Franchised Business.
The General Manager must ensure that Franchisee fulfils its obligations to Franchisee's customers in a timely and professional manner and he or she may not engage in any other business requiring his or her active participation during normal business hours.
At least one Principal Equity Operator, with or through the General Manager, must participate personally in the direct operation of the Franchised BHC Restaurant.
- (c) During the 60 days after the Opening Date, Franchisee must spend in Franchisee's Territory at least $10,000 to $13,000 on the initial opening advertising and promotion event of Franchisee's Franchised BHC Restaurant, using the grand opening advertising and promotional program that Franchisor approves, including the "soft opening" to be held on or about the Opening Date and the grand opening event.
Not later than 75 days after the Opening Date, Franchisee must provide Franchisor with a report itemizing Franchisee's expenditures on the grand opening advertising and promotion of Franchisee's Franchised BHC Restaurant.
- (d) Commencing with the third full calendar month after the Opening Date, Franchisee must (i) spend at least 1% of Franchisee's annual (January 1 through December 31) Gross Revenues on the local marketing, advertising, and promotion of Franchisee's Franchised BHC Restaurant, using marketing and promotional materials pre-approved or otherwise authorized in writing by Franchisor ("Local Advertising").
Franchisee must submit to Franchisor a Local Advertising plan which details the Local Advertising for the next 12-month period for Franchisor's approval.
Within thirty (30) days after the end of each of the above-mentioned periods, Franchisor will provide a template to Franchisee and Franchisee must submit to Franchisor, a fully completed marketing report of Franchisee's Local Advertising for the preceding concluded period in form and substance specified by Franchisor, including evidence to verify such expenditure during such period.
(f) Franchisee must fully participate with any gift card, customer loyalty, referral and other contests and promotions Franchisor arranges for, requires, or authorizes BHC franchisees to participate in.
(h) 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 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must either be or employ a General Manager who will devote their entire time during normal business hours to the management, operation, and development of the franchised business. The General Manager must ensure the franchisee fulfills its obligations to customers in a timely and professional manner and cannot engage in any other business requiring their active participation during normal business hours. At least one Principal Equity Operator, with or through the General Manager, must participate personally in the direct operation of the franchised Bhc restaurant.
Within 60 days after opening, a Bhc franchisee is required to spend between $10,000 and $13,000 on an initial advertising and promotion event, utilizing a grand opening program approved by Bhc. A report itemizing these expenditures must be submitted to Bhc within 75 days after the opening date. Commencing with the third full calendar month after the opening date, the franchisee must spend at least 1% of their annual gross revenues on local marketing, advertising, and promotion, using materials pre-approved by Bhc.
A Bhc franchisee must submit a local advertising plan detailing the local advertising for the next 12-month period for Bhc's approval. Franchisees must also submit a fully completed marketing report of their local advertising for the preceding period, including evidence to verify such expenditure. Franchisees must participate in any gift card, customer loyalty, referral, and other contests and promotions that Bhc arranges or requires. Bhc determines all matters relating to regional or system-wide advertising, public relations, and promotional campaigns. Franchisees must participate in all Bhc promotions described on Bhc's website and all Bhc-authorized charitable fundraising and group discount programs.