For Bhc, can the Master Franchisee and Subfranchisees advertise retail prices inconsistent with recommended prices?
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, the Master Franchisee must ensure that Subfranchisees comply with the franchisor's methodology for providing Bhc products to customers, in order to protect the integrity, reputation, and goodwill of the Bhc system and marks.
Franchisor may recommend retail prices for specific Bhc products and other products and services authorized for sale at a Bhc Restaurant. If Bhc recommends retail prices, the Master Franchisee must ensure that Subfranchisees do not advertise or promote retail prices inconsistent with these recommended prices, whether through telephone, printed materials, or any other media, including social media.
Furthermore, to the extent permitted by federal and state law, Bhc may designate maximum and minimum retail prices to be charged for Bhc products. This suggests that while franchisees have some pricing flexibility, Bhc retains control over advertised prices and may set price boundaries to maintain brand consistency and competitiveness.