Under what condition can Bhc terminate the Fund for the Marketing and Promotion Fee?

According to Bhc's 2025 Franchise Disclosure Document, Bhc can terminate the Fund for the Marketing and Promotion Fee. However, Bhc is not allowed to terminate the fund until all the money in it has been spent for advertising and promotional purposes. This protects franchisees by ensuring that the collected marketing fees are used as intended before the fund can be shut down.

This condition ensures that franchisees receive the benefit of the marketing fees they contribute. It prevents Bhc from simply dissolving the fund and retaining the unspent balance. This provides a level of transparency and accountability in how the marketing fees are managed and spent.

While Bhc intends for the fund to be perpetual, this clause provides a specific condition under which it can be terminated, offering clarity to franchisees. It is important for prospective franchisees to understand this condition and how it impacts the use of their marketing fee contributions.