Under what condition will Bhc require the Marketing and Promotion Fee to be paid?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| requested by you. | |||
| Audit | $10,000 to $20,000 | On receipt of invoice | You will pay us the costs of an audit to be performed if you fail to provide monthly financial statements, or if a random audit shows an understatement of Gross Revenue in excess of 2%. (6) |
| Late payment | $100 per occurrence, plus, the lesser of the daily equivalent of 10% per year ("Interest"). | Upon demand | Interest is payable on entire overdue amount beginning with the date payment is due until payment, late charge and interest is paid in full. |
| Failure to Submit Required Report Fee (7) | $200 per week | Your bank account will be debited for failure to submit any requested report within ten (10) days of request | Payable if you fail to submit any required report or financial statement when due. Fines collected are paid to the Marketing and Promotion Fees contribution, if established, or us. You will continue to incur this fee u |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee will be required to pay fines collected for failure to submit required reports to the Marketing and Promotion Fees contribution, if established. Specifically, if a franchisee fails to submit any requested report within ten days of the request, their bank account will be debited $200 per week. This fee continues to incur until the required reports are submitted.
This means that Bhc franchisees must be diligent in submitting all required reports and financial statements on time to avoid incurring these weekly fees. The funds collected from these penalties are then directed towards the Marketing and Promotion Fees contribution, assuming such a fund has been established by Bhc.
It is important for prospective franchisees to understand the reporting requirements and deadlines outlined in the Operations Manual and Franchise Agreement to avoid these penalties. Franchisees should clarify with Bhc what specific reports are required, the exact due dates, and the method for submitting these reports to ensure compliance and avoid unnecessary fees.