What is the dishonored item fee that Bhc charges for unsuccessful payments, and what is the maximum amount?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ent of 10% per year ("Interest") of the amount past due. Franchisor and Franchisee agree that the Interest of the amount past due is reasonable because (i) as a result of any such late payment, Franchisor will incur certain
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a franchisee's payment is unsuccessful due to insufficient funds, a stop payment, or a similar event, the franchisee must pay a dishonored item fee. This fee will be the lesser of $100 per occurrence or the highest amount allowed by law. This means that the fee will not exceed $100 unless state or local laws permit a higher charge for dishonored payments.
This policy is fairly standard in franchising, as franchisors often implement fees to cover the administrative and financial costs associated with processing failed payments. The 'highest amount allowed by law' clause protects the franchisee from excessive fees that may be illegal in their jurisdiction. It is important for prospective Bhc franchisees to be aware of this fee, as repeated instances of dishonored payments could lead to significant additional costs.
For a prospective franchisee, this means ensuring sufficient funds are available when making payments to Bhc. Setting up automatic payments or closely monitoring account balances can help avoid these fees. Franchisees should also familiarize themselves with local laws regarding dishonored check fees to understand their rights and obligations fully. This proactive approach can help maintain a positive financial relationship with Bhc and avoid unnecessary expenses.