factual

What do 'Actual Costs' include for Bhc, as used in the Disclosure Document?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (5) "Actual Costs", as used in this Disclosure Document, include our then-current daily allowance, travel, meals, and boarding expenses for our staff per our then-current daily allowance policy. Actual Costs will

Source: Item 6 — Other Fees (FDD pages 12–18)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, "Actual Costs" include the then-current daily allowance, travel, meals, and boarding expenses for Bhc's staff, as per their then-current daily allowance policy. This definition is relevant when Bhc provides additional on-site visits to the BHC Restaurant after the initial three visits before opening, in which case the franchisee must reimburse Bhc for these actual costs.

For a prospective Bhc franchisee, this means that if Bhc deems it necessary to conduct more than three on-site inspections before the restaurant opens, the franchisee will be responsible for covering the expenses incurred by Bhc's staff during those visits. These expenses specifically encompass daily allowances, travel, meals, and lodging.

It is important for potential franchisees to understand Bhc's daily allowance policy to anticipate these potential costs accurately. Franchisees should inquire about the typical number of post-opening visits and the average expenses associated with them to better prepare their budget. This policy ensures that Bhc is compensated for the direct costs associated with providing additional support and oversight during the restaurant setup and opening phase.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.