What is the minimum amount that Bhc requires franchisees to spend on advertising?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
otional purposes.
(xiii) In 2024, we neither collected nor expended any Marketing and Promotion Fees.
(xiv) We require you, your Affiliate Franchisee, or your Subfranchisees to spend at least $10,000 to $13,000 on the initial opening advertising and promotion event in connection with the opening of a Master Franchised BHC Restaurant sometime during the first 60 days after a Master Franchised BHC Restaurant opens (see section 4.4(c) of the MFA). Not later than 75 days after the Opening Date, you and your Subfranchisees must provide us with a report itemizing your expenditures on the initial opening advertising and promotion of a Master Franchised BHC Restaurant. If you fail to meet the initial opening advertising and promotion, you will be required to add the shortage toward the Marketing and Promotion Fee.
(xv) Also, beginning the 3rd full calendar month after a Master Franchised BHC Restaurant opens for business, we require that you, your Affiliate Franchisee, and your Subfranchisees spend at least 1% of your, your Affiliate Franchisee's, or your Subfranchisees' annual Gross Revenue during the periods of January 1 through December 31 on the local advertising and promotion of your or your Subfranchisee's BHC Restaurant using marketing and promotional materials pre-approved or otherwise authorized in writing by us ("Local Advertising") (see section 4.4(d)) of the MFA). You must submit to us a Local Advertising plan which details the Local Advertising for the next 12-month period for our approval. Within thirty (30) days after the end of each of the above-mentioned periods, we will provide a template to you and you must submit to us, a fully completed marketing report for the immediately preceding concluded period
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum amount on advertising, both for the initial opening and on an ongoing basis. For the initial opening of a Master Franchised Bhc Restaurant, franchisees must spend between $10,000 and $13,000 on advertising and promotion within the first 60 days. Franchisees must provide Bhc with a report itemizing these expenditures no later than 75 days after the opening date. Failure to meet this initial advertising requirement will result in the franchisee being required to add the shortage amount to the Marketing and Promotion Fee.
In addition to the initial advertising spend, beginning in the third full calendar month after opening, franchisees must spend at least 1% of their annual Gross Revenue on local advertising and promotion. This local advertising must use marketing and promotional materials pre-approved or authorized in writing by Bhc. Franchisees are required to submit a local advertising plan detailing the advertising activities for the next 12-month period for Bhc's approval.
Franchisees must also submit a fully completed marketing report within thirty days after the end of each period, including evidence to verify the expenditures made during that period. Bhc also retains the right to conduct collective or national campaigns via local social media on behalf of the franchisee. These advertising requirements ensure consistent brand promotion and adherence to Bhc's marketing standards, while also allowing for local advertising efforts to target specific markets.