When are the Marketing and Promotion Fees due and payable for Bhc, assuming they are required?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
g Date, Franchisee must pay Franchisor a "Royalty" of 4.5% of Franchisee's Gross Revenues.
- (b) Royalties are due and payable on a monthly basis on the following 5th day for the previous month (unless that day is a banking holiday, in which case the Royalties are due and payable on the next business day). Royalties will be calculated on the Gross Revenues received during the prior
month. Monthly payments of Royalties are to be accompanied by a revenue report in the form prescribed by Franchisor.
4.4 Marketing, Advertising and Promotion.
- (a) Beginning on the Opening Date, Franchisee must pay Franchisor a "Marketing and Promotion Fee" of 2.5 of Franchisee's Gross Revenues. However, Franchisor is not requiring this contribution at this time because Franchisor does not anticipate brand marketing until Franchisor has at least 50 Franchised BHC Restaurants in operation. If established, this fee is due and payable at the same time and in the same manner as Royalty Fee. Franchisor reserves the right to require payment of this fee once Franchisor has more than 50 Franchised BHC Restaurants in operation. Once BHC starts to require payment, Marketing and Promotion Fees collected from BHC franchisees less a 15% administration fee will be spent for national and regional advertising and promotional campaigns designed to promote and enhance the value of the BHC trademarks and their general public recognition and acceptance. We need not ensure that any particular franchisee benefits directly or proportionately from the Marketing and Promotion Fee.
- (b) When applicable, Marketing and Promotion Fees are due and payable on a monthly basis on the 14th of each month (unless that day is a banking holiday, in which case the Marketing and Promotion Fees are due and payable on the next business day). Marketing and Promotion Fees will be calculate
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Marketing and Promotion Fee is 2.5% of the franchisee's Gross Revenues. However, Bhc is not currently requiring this fee because the company does not anticipate brand marketing until there are at least 50 Bhc restaurants in operation. If the fee is established, it will be due and payable at the same time and in the same manner as the Royalty Fee. Bhc retains the right to require the payment once there are more than 50 Bhc restaurants in operation.
When applicable, the Marketing and Promotion Fees are due monthly on the 14th of each month, unless that day is a banking holiday, in which case the fees are due on the next business day. The fees are calculated based on Gross Revenues received during the monthly periods ending on the last day of each month.
Prospective franchisees should note that even if the Marketing and Promotion Fee is not immediately required, Bhc can implement it once the restaurant count exceeds 50. Franchisees should factor this potential future expense into their financial planning. Additionally, franchisees are still required to spend between $10,000 and $13,000 on an initial opening advertising and promotion event within 60 days after the Opening Date.