What is the process for a Bhc franchisee to get approval for their Local Advertising plan?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
evenues 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, franchisees are required to seek approval from Bhc for their local advertising plans. Specifically, starting from the third full calendar month after the restaurant's opening date, franchisees must allocate at least 1% of their annual gross revenues (from January 1 through December 31) towards local marketing, advertising, and promotion. This advertising must utilize materials that Bhc has pre-approved or authorized in writing. To ensure compliance, franchisees must submit a detailed local advertising plan to Bhc for approval, outlining their planned activities for the upcoming 12-month period.
Following the execution of the advertising plan, Bhc provides a template for franchisees to complete a marketing report. This report must detail all local advertising activities from the preceding period, including evidence to verify the expenditures. The franchisee must submit the completed report to Bhc within thirty days after the end of each period. This process allows Bhc to maintain control over brand messaging and ensure that franchisees are actively promoting their locations in a manner consistent with the company's overall marketing strategy.
This requirement ensures that Bhc franchisees invest in local marketing efforts and adhere to brand standards in their advertising. The approval process allows Bhc to review and guide local advertising strategies, ensuring consistency and effectiveness. Franchisees should carefully document all local advertising expenditures and maintain open communication with Bhc to facilitate smooth plan approvals and reporting.