Who retains any interest earned on monies held in the Bhc Fund?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Any interest earned on monies held in the Fund may be retained by us for our own use, in our discretion.
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 retains any interest earned on monies held in the Fund for its own use and discretion. The 'Fund' refers to the Marketing and Promotion Fee collected from franchisees, which Bhc may transfer to a separate entity or administratively segregate on its books. However, Bhc is not required to maintain these fees in a separate account.
This arrangement means that while franchisees contribute to the Marketing and Promotion Fund, Bhc benefits directly from any interest accrued on those funds. This is a potential benefit for Bhc, as it can use the interest income at its discretion.
For a prospective franchisee, this highlights the importance of understanding how marketing funds are managed and who benefits from the interest earned. While the FDD states that in 2024, Bhc neither collected nor expended any Marketing and Promotion Fees, this policy could impact franchisees in the future should the fund become active.