When is the Marketing and Promotion Fee due for a Bhc franchise, if it is required?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Marketing and Promotion Fees | 2.5% of Gross Revenue | Same date as the Royalty Fee | Paid to BHC. However, we are not requiring this contribution at this time because we do not anticipate brand marketing until we have at least 50 BHC Restaurants in operation. Any expenses for local marketing must be paid by you directly to the vendors. We reserve the right to require payment of this fee (2.5% of Gross Revenue) once we have more than 50 BHC Restaurants in operation. |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Marketing and Promotion Fee is due on the same date as the Royalty Fee. Currently, Bhc is not requiring this fee, as they do not anticipate brand marketing until there are at least 50 Bhc restaurants in operation.
Once the fee is implemented, it will be 2.5% of Gross Revenue. This fee is paid to Bhc. However, until Bhc has at least 50 restaurants operating, franchisees are responsible for paying any expenses for local marketing directly to the vendors.
Bhc retains the right to require payment of the Marketing and Promotion Fee once the 50-restaurant threshold is met. This means that while franchisees may not be required to pay this fee initially, they should be prepared to incorporate this expense into their budget once Bhc scales up its brand marketing efforts.