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

According to Bhc's 2025 Franchise Disclosure Document, Bhc may impose an additional assessment for special advertising or promotional activities on a regional or system-wide basis. However, this is contingent upon securing the agreement of two-thirds of all affected franchised Bhc restaurants through an affirmative vote. This condition applies to both franchisees and master franchisees.

This requirement ensures that a significant majority of franchisees support the additional assessment before it is implemented. This mechanism aims to prevent Bhc from unilaterally imposing extra costs on franchisees without their consent. The affirmative vote provides a level of protection and ensures that the franchisees have a say in the financial decisions related to advertising and promotional activities.

For a prospective Bhc franchisee, this condition means that while Bhc can initiate additional advertising assessments, they cannot do so without the support of a substantial portion of the franchise network. This offers some assurance that such assessments will only occur when there is a collective agreement on the need and potential benefit of the proposed activities. Franchisees should stay informed about any proposed assessments and actively participate in the voting process to protect their interests.

It is important for potential franchisees to understand the voting process and how these assessments are determined. They should also inquire about historical examples of such assessments and their impact on franchisees' businesses. This information can help them make an informed decision about joining the Bhc franchise system.