What is the Failure to Submit Required Report Fee for Bhc, and where do the collected fines go?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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"). | Upon demand | Interest is payable on entire overdue amount beginning with the date payment is due until payment, late charge and interest is paid in full. |
| Failure to Submit Required Report Fee (7) | $200 per week | Your bank account will be debited for failure to submit any requested report within ten (10) days of request | Payable if you fail to submit any required report or financial statement when due. Fines collected are paid to the Marketing and Promotion Fees contribution, if established, or us. You will continue to incur this fee u |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Failure to Submit Required Report Fee is $200 per week. This fee is incurred if a franchisee fails to submit any requested report within ten days of the request. Bhc will debit the franchisee's bank account for this fee.
The fines collected from this fee are allocated to the Marketing and Promotion Fees contribution, if such a fund has been established. If a Marketing and Promotion Fees contribution has not been established, the fines are paid directly to Bhc.
Importantly, the franchisee will continue to incur this $200 per week fee until the required reports are submitted, meaning the costs can accumulate quickly for ongoing non-compliance. This highlights the importance of franchisees adhering to Bhc's reporting requirements to avoid these penalties.