When must a Bhc Master Franchisee submit a Local Advertising plan to Franchisor for approval?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Commencing with the third full calendar month after the Opening Date, Master Franchisee must (i) spend at least 1% of Master Franchisee's annual (January 1 through December 31) Gross Revenues on the local marketing, advertising, and promotion of Master Franchised BHC Restaurant, using marketing and promotional materials pre-approved or otherwise authorized in writing by Franchisor ("Local Advertising"). Master Franchisee must submit to Franchisor a Local Advertising plan which details the Local Advertising for the next 12-month period for Franchisor's approval. Within thirty (30) days after the end of each of the above-mentioned periods, Franchisor will provide a template to Master Franchisee and Master Franchisee must submit to Franchisor, a fully completed marketing report of Master Franchisee's Local Advertising for the preceding concluded period in form and substance specified by Franchisor, including evidence to verify such expenditure during such period.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must start local advertising in the third full calendar month after the opening date of their Bhc restaurant. The advertising must use marketing and promotional materials pre-approved by Bhc. The Master Franchisee is required to submit a local advertising plan to Bhc for approval, detailing the local advertising activities planned for the next 12-month period.
This means that a Bhc Master Franchisee needs to proactively plan and budget for local advertising expenses, allocating at least 1% of their annual gross revenues for this purpose. They must also gain approval from Bhc for their advertising strategies and materials. This ensures that the local advertising aligns with Bhc's brand standards and marketing strategies.
Furthermore, the Master Franchisee must provide a fully completed marketing report to Bhc within 30 days after the end of each period, using a template provided by Bhc. This report should include evidence verifying the advertising expenditure during the period. This ongoing reporting requirement ensures accountability and allows Bhc to monitor the Master Franchisee's compliance with the local advertising obligations.