What is the amount of the initial franchise fee for a single Bhc restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
RICTIVE PROVISIONS CONTAINED THEREIN AND AS MAY BE OTHERWISE SET FORTH IN THE ORGANIZATIONAL DOCUMENTS AND OPERATING AGREEMENTS OF THIS IITY."
- (c) If Franchisee is an entity, Franchisee warrants that:
- (i) it is duly organized or formed and validly existing in good standing under the laws of the jurisdiction of its incorporation or formation; and
- (ii) it has the necessary consents, approvals, licenses and/or permits to carry out the business activities contemplated by this Agreement.
**4. INITIAL A
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the initial franchise fee for a single Bhc restaurant is $40,000. This fee is payable in full via cashier's check, money order, or wire transfer to Bhc. The FDD specifies that this fee, along with any other payments for goods or services received from Bhc before the restaurant opens, must be paid upfront.
Bhc considers the initial franchise fee fully earned upon payment. This means that once the franchisee pays the $40,000, Bhc is not obligated to refund it, regardless of whether the franchisee ever opens the restaurant. This is a standard practice in franchising, as the initial fee compensates the franchisor for the initial costs of granting the franchise and providing initial support.
In addition to the initial franchise fee, prospective franchisees should also be aware of other initial costs, such as the initial deposit of $20,000, which is refundable under specific conditions, and the initial training fee of $8,000 for up to two people. Franchisees must also budget for the grand opening advertising and promotion, which requires spending between $10,000 and $13,000 within the first 60 days after opening.