Can Bhc require a cooperative to merge with another or subdivide?

According to Bhc's 2025 Franchise Disclosure Document, Bhc has the authority to require advertising cooperatives to merge or subdivide. Specifically, Bhc may require a cooperative to merge with another cooperative servicing an adjacent or proximate area, or to subdivide a cooperative into smaller groupings.

This provision grants Bhc significant control over the structure and operation of advertising cooperatives within its franchise system. This allows Bhc to optimize advertising efforts across different regions or areas. For a prospective franchisee, this means that the advertising cooperative they are a part of could be subject to changes in its size or scope at the discretion of Bhc.

Bhc also retains the right to dissolve a cooperative when it simultaneously dissolves all advertising cooperatives, potentially centralizing all group advertising activities under the Marketing and Promotion Fee. This further emphasizes Bhc's control over advertising strategies and the potential for changes in how advertising is managed and funded within the franchise system. Franchisees should be aware that Bhc can alter the advertising landscape by merging, subdividing, or dissolving cooperatives, which could impact their local advertising efforts and strategies.