What is the difference in royalty fee calculation between Affiliate Franchised Bhc Restaurants and Subfranchised Bhc Restaurants?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee from Affiliate Franchised BHC Restaurants | 4.5% of Gross Revenue (2)(3) | Payable monthly on the following 5th days for the previous month (unless that day is a banking holiday, in which case the Royalties are due and payable on the next business day). Royalties will be calculated on the Gross Revenues received during every two (2) weeks. | Paid to us. We require payment by electronic funds transfer ("EFT"). We reserve the right, upon 90 days' written notice to you, to require you to pay Royalty Fees on a more frequent basis, including monthly or weekly |
| Royalty Fee from Subfranchised BHC Restaurants | 4.5% Gross Revenues of Subfranchised BHC Restaurants. (3) | Same date as the Royalty Fee from Affiliate Franchised BHC Restaurants | Paid to us. We require payment by electronic funds transfer ("EFT"). We reserve the right, upon 90 days' written notice to you, to require you to pay Royalty Fees on a more frequent basis, including monthly or weekly The maximum royalty you can charge Subfranchisee is 7% of Gross Revenues. |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, both Affiliate Franchised Bhc Restaurants and Subfranchised Bhc Restaurants pay a royalty fee of 4.5% of gross revenues. The royalty fee from Affiliate Franchised Bhc Restaurants is 4.5% of Gross Revenue. The royalty fee from Subfranchised Bhc Restaurants is 4.5% of Gross Revenues of Subfranchised Bhc Restaurants.
Both royalty fees are payable monthly on the 5th day of the following month for the previous month's revenues, unless that day is a banking holiday, in which case the royalties are due on the next business day. Bhc requires payment by electronic funds transfer (EFT) for both types of royalty fees. Bhc also reserves the right to require payment of Royalty Fees on a more frequent basis, including monthly or weekly, with 90 days' written notice.
For Subfranchised Bhc Restaurants, the franchisee can charge a royalty to their subfranchisees, but this royalty cannot exceed 7% of the Gross Revenues of the Subfranchised Bhc Restaurants. This means the franchisee retains a portion of the royalty collected from subfranchisees, while still remitting 4.5% to Bhc.