What condition allows the Bhc Franchisor to charge more than $5,000 for the Transfer Review Fee?

According to Bhc's 2025 Franchise Disclosure Document, the standard transfer review fee is $5,000. However, Bhc can charge a higher amount if their out-of-pocket costs associated with the transfer or assignment, including attorney's fees, exceed this amount. This means that if Bhc incurs expenses greater than $5,000 while reviewing and processing the transfer, they can pass those costs on to the franchisee.

For a prospective Bhc franchisee, this implies that the transfer review fee is not necessarily fixed at $5,000. It could be higher depending on the complexity of the transfer and the legal costs Bhc incurs. Therefore, when planning to sell or transfer a franchise, franchisees should be prepared for the possibility of a higher transfer fee.

This type of clause is relatively common in franchising, as it allows the franchisor to recoup legitimate expenses associated with the transfer process. It protects Bhc from absorbing costs that arise due to complicated or contentious transfers. Franchisees should request a detailed breakdown of the costs if the transfer fee exceeds the standard $5,000 to ensure transparency and justification for the higher fee.