What is the minimum number of Bhc restaurants in operation before brand marketing is anticipated?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
However, we are not requiring this contribution at this time because we do not anticipate brand marketing until we have at least 50 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.
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, Bhc does not anticipate brand marketing until there are at least 50 Bhc restaurants in operation. At that time, franchisees will be required to pay a Marketing and Promotion Fee of 2.5% of their monthly Gross Revenue. This fee, minus a 15% administration fee, will be used for national and regional advertising and promotional campaigns. Bhc need not ensure that any particular franchisee benefits directly or proportionately from the Marketing and Promotion Fee.
This indicates that franchisees may not see immediate or direct benefits from the marketing fees they contribute. The advertising and promotional campaigns are designed to promote and enhance the value of the Bhc trademarks and their general public recognition and acceptance, which could indirectly benefit all franchisees over time.
Prospective franchisees should consider the implications of this delayed marketing rollout. While there is no immediate marketing support, once the 50-restaurant threshold is met, franchisees will be required to contribute to the Marketing and Promotion Fee. Franchisees should inquire about Bhc's plans for supporting new locations before the 50-restaurant threshold is reached and how they can market their individual locations effectively in the early stages of the franchise system.