What is the amount of the initial deposit required per Bhc Restaurant when signing the Master Franchise Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
and payable in full, by cashier's check or money order or wire transfer to Franchisor when Master Franchisee signs this Agreement. The Initial Franchise Fee is fully earned by Franchisor when paid.
4.2 Initial Deposit.
When Master Franchisee signs this Agreement, Master Franchisee must pay Franchisor USD Twenty Thousand (USD $20,000) per BHC Restaurant as a deposit fee (the "Deposit"). Deposit is due and payable in full, by cashier's check or money order or wire transfer to Franchisor when Master Franchisee signs this Agreement. The purpose of the Deposit is to secure against non-payment of Master Franchisee's obligations under this Agreement. The Deposit must be paid in a lump sum and is refundable within sixty (60) days of the expiration or termination of this Agreement if and only if Master Franchisee is in full compliance with Master Franchisee's obligations in this Agreement, including, without limitation, Master Franchisee's post termination obligations set forth in section 11.2 and 15.1 thereof. If any amount is deducted from the Deposit b
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must pay an initial deposit of $20,000 per Bhc Restaurant when signing the Master Franchise Agreement. This deposit is payable in full via cashier's check, money order, or wire transfer to Bhc.
The purpose of this deposit is to secure the Master Franchisee's obligations under the agreement. This means Bhc can use the deposit to cover any costs or losses they incur if the Master Franchisee fails to meet their contractual duties.
The deposit is refundable within 60 days of the agreement's expiration or termination, but only if the Master Franchisee has fully complied with all obligations, including those that extend beyond the termination of the agreement. If Bhc deducts any amount from the deposit due to the Master Franchisee's non-compliance, the Master Franchisee is responsible for replenishing the deposit back to $20,000 per restaurant within ten business days of the deduction.