For what purposes is Bhc prohibited from using the Marketing and Promotion Fee money?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (x) We may not use this money principally to solicit new franchise sales for any purposes other than those provided for in the MFA.
We may include information regarding acquiring a franchise on or as a part of materials and items produced by or for 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, the Marketing and Promotion Fee collected from franchisees cannot be used principally to solicit new franchise sales, except for purposes outlined in the Master Franchise Agreement (MFA). Bhc can include information about acquiring a franchise in materials produced for the Marketing and Promotion Fee.
Bhc collects a Marketing and Promotion Fee of 2.5% of monthly Gross Revenue from franchisees, but is not requiring this contribution at this time because they do not anticipate brand marketing until there are at least 50 Bhc restaurants in operation. Once required, these fees, less a 15% administration fee, will be used for national and regional advertising and promotional campaigns to enhance the value of the Bhc trademarks and their public recognition.
This restriction ensures that the fees paid by franchisees are primarily used for marketing and promoting the Bhc brand and supporting existing locations, rather than for expanding the franchise network. However, Bhc retains the right to include franchise recruitment information within its marketing materials, allowing for some overlap between brand promotion and franchise development.