Who bears the expense of employing architects, designers, and engineers to complete the plans for the Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
At Franchisee's sole expense, Franchisee must employ directly architects, designers, engineers, or others as reasonably acceptable to Franchisor to complete, adapt, modify, or substitute the sample plans and specifications for the Franchised BHC Restaurant, and review and monitor all licensing related matters.
Developer shall be solely responsible for acquiring all of the necessary permits and licenses, including but not limited to permits related to structural reinforcement, grease interceptors, and parking.
The architect must submit a complete set of final plans and specifications to Franchisor before commencing leasehold improvement of the Franchised BHC Restaurant.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs of hiring architects, designers, and engineers to finalize the restaurant's plans. Specifically, the franchisee must employ these professionals, who must be reasonably acceptable to Bhc, to complete, adapt, modify, or substitute the sample plans and specifications for the franchised Bhc Restaurant. This also includes the review and monitoring of all licensing related matters.
This means that prospective Bhc franchisees need to budget for these professional services in addition to the standard franchise fees and build-out costs. It's a significant expense, as architectural and engineering services can be quite costly. The franchisee has sole responsibility for acquiring all necessary permits and licenses, including those related to structural reinforcement, grease interceptors, and parking.
Bhc maintains control over the restaurant's design, requiring franchisees to use licensed general contractors, designers, vendors, and architects that Bhc accepts. While Bhc provides a sample prototype layout and floor plan, the franchisee is responsible for adapting these to the specific site, ensuring compliance with local regulations, and obtaining Bhc's final approval. Franchisees must also pay Bhc a $2,500 site design review fee and a site review fee ranging from $2,000 to $4,000.
Therefore, while Bhc offers initial plans and reviews the franchisee's adaptations, the financial burden of customizing the plans and ensuring they meet all requirements falls squarely on the franchisee. This is a common practice in franchising, where franchisees typically bear the costs of adapting the franchisor's standard design to their specific location.