What costs and expenses must the Master Franchisee reimburse Bhc for in reviewing a proposed site?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
d reviewed and consented to by Franchisor within four (4) months after the Effective Date. Upon signing this Franchise Agreement, Master
Franchisee must promptly locate one or more proposed sites which meet Franchisor's current standards and specifications. For each proposed site, Master Franchisee will submit to Franchisor certain information regarding the site that Franchisor requests. Upon receiving the information regarding a proposed site, Franchisor will review the information and either accept or reject the proposed site. For any site that Franchisor reviews, Master Franchisee must reimburse Franchisor for all costs and expenses that Franchisor incurs in reviewing the site. If Franchisor does not approve the proposed site within 30 days after Master Franchisee's complete submission of the requested information (or 15 days after Master Franchisee provides any supplemental information Franchisor requests), the site will be deemed rejected. If Franchisor disapproves, Master Franchisee must promptly propose an alternative location.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Master Franchisee is responsible for reimbursing Bhc for all costs and expenses that Bhc incurs while reviewing a proposed site for the Franchised BHC Restaurant. Bhc will review information submitted by the Master Franchisee regarding potential sites and either accept or reject the proposed site.
Additionally, the Master Franchisee must pay Bhc a $2,500 site design review fee and a separate site review fee ranging from $2,000 to $4,000. These fees cover Bhc's costs and expenses for providing site design review and site review services.
Furthermore, before the Franchised BHC Restaurant opens to retail customers and before final inspections by any governmental agency, Bhc will visit the site for up to three on-site visits and complete a final "walk through" inspection. The Master Franchisee is responsible for an inspection fee of $600, plus all accommodation, transportation, meals, daily allowances, and other costs and expenses for Bhc's personnel in connection with these visits, but only up to three times per Franchised BHC Restaurant.