When are Marketing and Promotion Fees due and payable for Bhc franchises?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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 calculated on the Gross Revenues received during the monthly periods ending on the last day of each month.
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 contribution, as they do not anticipate brand marketing until there are at least 50 franchised 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 reserves the right to require payment of this fee once there are more than 50 franchised Bhc restaurants in operation.
When applicable, the 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 fees are due on the next business day. The fees are calculated based on the Gross Revenues received during the monthly periods ending on the last day of each month.
Prospective franchisees should note that even if the national marketing fee is not yet being collected, they are still required to spend money on local advertising. Commencing with the third full calendar month after the Opening Date, franchisees must spend at least 1% of their annual Gross Revenues on local marketing, advertising, and promotion. Franchisees must also submit a Local Advertising plan to Bhc for approval, detailing the local advertising for the next 12-month period. Additionally, franchisees must provide a marketing report of their Local Advertising, including evidence to verify such expenditure, within thirty days after the end of each period.