conditional

Under what condition can Bhc Franchisor impose an additional assessment for special advertising or promotional activities?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (e) On a regional or system-wide basis, Franchisor may impose an additional assessment upon affected franchisees for special designated advertising or promotional activities if two-thirds of all affected Franchised BHC Restaurants agree to such additional assessment by affirmative vote.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, Bhc may impose an additional assessment upon affected franchisees or master franchisees for special designated advertising or promotional activities on a regional or system-wide basis. However, this is contingent upon two-thirds of all affected franchised Bhc Restaurants agreeing to such additional assessment through an affirmative vote.

This condition ensures that a significant portion of the franchisees support the additional assessment before it is implemented. This provides a level of protection for franchisees, as Bhc cannot unilaterally impose these additional costs without the consent of a supermajority of those affected.

For a prospective franchisee, this means that while Bhc has the ability to request additional funds for advertising, they must first gain the approval of two-thirds of the franchisees who would be subject to the assessment. This mechanism allows franchisees to have a voice in the marketing and promotional strategies of the brand, particularly when it comes to special or unique activities that go beyond the standard marketing efforts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.