When is the Dishonored Item Fee for Bhc incurred, and what is the maximum amount?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| inspecting new suppliers you propose. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| requested by you. | |||
| Audit | $10,000 to $20,000 | On receipt of invoice | You will pay us the costs of an audit to be performed if you fail to provide monthly financial statements, or if a random audit shows an understatement of Gross Revenue in excess of 2%. (6) |
| Late payment | $100 per occurrence, plus, the lesser of the daily equivalent of 10% per year ("Interest"). |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Dishonored Item Fee is incurred when a check or EFT payment is unsuccessful due to reasons such as insufficient funds or a stop payment order. This fee is due as it is incurred.
The maximum amount for the Dishonored Item Fee is the lesser of $100 per occurrence or the highest amount allowed by law. This means that Bhc will charge either $100 or whatever the maximum amount legally permitted is in the franchisee's jurisdiction, whichever is lower.
This fee is fairly standard in franchising and other business contexts. It is designed to cover the administrative costs and potential financial losses associated with processing a payment that is later rejected. Prospective Bhc franchisees should ensure they maintain sufficient funds and avoid stop payments to prevent incurring this fee.