Can a Bhc Master Franchisee advertise retail prices inconsistent with Bhc's recommendations?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
To enhance uniformity in the delivery of goods and services to retail customers by Franchisor's Master Franchisees and the strength of Franchisor's Marks in inter-brand competition, and subject to applicable federal and state antitrust laws, Franchisor may recommend retail prices for specific BHC Products and other products and services Franchisor authorize for sale at a BHC Restaurant.
If Franchisor does so, Master Franchisee may not, and ensure that Subfranchisees do not, advertise or promote (whether by telephone, printed materials, or any other media, including social media) retail prices that are inconsistent with these recommended prices.
Also, to the extent permitted by federal and state law applicable to the BHC Restaurant, Franchisor may designate maximum and minimum retail prices to be charged for BHC Products.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc may recommend retail prices for specific Bhc products. If Bhc does provide recommended prices, the Master Franchisee must ensure that they and their subfranchisees do not advertise or promote retail prices inconsistent with Bhc's recommendations. This restriction applies to all forms of advertising, including telephone, printed materials, and social media.
Bhc also retains the right to designate maximum and minimum retail prices for Bhc products, to the extent permitted by federal and state law. This means that Bhc can set a price range within which the Master Franchisee must operate.
These stipulations are designed to maintain uniformity in the delivery of goods and services to retail customers and to strengthen Bhc's brand in the competitive market. By controlling pricing, Bhc aims to ensure a consistent customer experience and protect the brand's reputation.