What costs does the 'Transfer Review Fee' for a Bhc franchise assignment cover?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
e notifies Franchisor of Master Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the BHC Restaurant, or a controlling or non-controlling interest in Master
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Transfer Review Fee covers specific out-of-pocket expenses incurred by Bhc during the transfer or assignment of a franchise. This fee is non-refundable and is set at $5,000.00, but may increase if Bhc's costs exceed this amount.
The primary purpose of the Transfer Review Fee is to reimburse Bhc for expenses directly related to the transfer process. These expenses specifically include attorney's fees, which are likely incurred when Bhc reviews the transfer documents and assesses the legal implications of the transfer.
For a prospective Bhc franchisee, it's important to understand that this fee is in addition to any other transfer fees that may be required. The franchisee is responsible for covering these costs to facilitate the transfer. The fact that the fee is non-refundable means that even if the transfer is not approved, the franchisee will not receive this money back. Also, the initial $5,000 may not be the final amount if Bhc's costs, particularly legal fees, exceed that amount.