Under what condition will Bhc start requiring the Marketing and Promotion Fee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) We have no obligation to conduct advertising.
If we conduct advertising, you must pay us a Marketing and Promotion Fee of 2.5% of your monthly Gross Revenue (section 4.4(a) of the MFA).
However, we are not requiring this contribution at this time because we do not anticipate brand marketing until we have at least 50 BHC Restaurants in operation.
Once BHC starts to require payment, Marketing and Promotion Fees collected from BHC franchisees less a 15% administration fee will be spent for national and regional advertising and promotional campaigns designed to promote and enhance the value of the BHC trademarks and their general public recognition and acceptance.
We need not ensure that any particular franchisee benefits directly or proportionately from the Marketing and Promotion Fee.
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 is not currently requiring franchisees to pay a Marketing and Promotion Fee. However, Bhc will start requiring a Marketing and Promotion Fee of 2.5% of monthly Gross Revenue once there are at least 50 Bhc restaurants in operation.
Once Bhc starts collecting the Marketing and Promotion Fees, the fees collected from franchisees, less a 15% administration fee, will be used for national and regional advertising and promotional campaigns. These campaigns are designed to promote and enhance the value of the Bhc trademarks and their general public recognition and acceptance. Bhc does not need to ensure that any particular franchisee benefits directly or proportionately from these fees.
This means that prospective franchisees should be aware that while they may not initially be required to pay the Marketing and Promotion Fee, this will change as the Bhc system grows. Franchisees should factor this future expense into their financial projections. The 15% administration fee retained by Bhc also reduces the amount directly spent on advertising and promotion.