Under what condition can Bhc impose an additional assessment upon affected Master Franchisees for special designated advertising or promotional activities?

According to Bhc's 2025 Franchise Disclosure Document, Bhc may impose an additional assessment upon affected 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 who will be subject to the additional assessment are in agreement with the proposed advertising or promotional activities. This mechanism aims to prevent Bhc from unilaterally imposing extra costs on franchisees without their consent, providing a level of protection and collective decision-making power to the franchisees.

This type of clause is relatively common in franchising, as it balances the franchisor's need to conduct effective marketing campaigns with the franchisees' financial interests. Franchisees should consider the implications of such a clause, including the potential for increased costs and the importance of participating in any voting process related to additional assessments.