What is the amount of the initial franchise fee for a single Bhc store?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
entity, Franchisee must place the following legend on all certificates evidencing an equity interest:
"THE TRANSFER OF THE EQUITY INTEREST IN THE ENTITY REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A FRANCHISE AGREEMENT DATED , BETWEEN THIS ENTITY AND BHC USA LLC REFERENCE IS MADE TO SUCH FRANCHISE AGREEMENT AND THE RESTRICTIVE 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 AND ON-GOING PAYMENTS BY FRANCHISEE
4.1 Initial Franchise Fee.
- (a) The "Initial Franchise Fee" for a single Franchised BHC Restaurant is $40,000.
- (b) The Initial Franchise Fee (and all other payments to Franchisor for goods or services received from Franchisor before Franchisee's Franchised BHC Restaurant opens for business) is due and payable in full, by cashier's check or money order or wire transfer to Franchisor. The Initial Franchise Fee is fully earned by Franchisor when paid.
4.2 Initial Deposit.
The "Initial Deposit" for a single Franchised BHC Restaurant is $20,000. The Initial Deposit is due and payable in full, by cashier's check or mon
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 due in full via cashier's check, money order, or wire transfer when the franchisee agreement is signed. Bhc considers this fee fully earned upon payment.
In addition to the initial franchise fee, a prospective franchisee must also pay an initial deposit of $20,000. This deposit is to secure against non-payment of the franchisee's obligations under the agreement. The initial deposit must be paid in a lump sum and is refundable within 60 days of the expiration or termination of the agreement if the franchisee has complied with all obligations.
It is typical in the franchise industry for the initial franchise fee to be non-refundable. The initial franchise fee provides the franchisee with the right to operate under the Bhc brand and system. It also covers Bhc's initial costs in setting up the franchise, including training and support.