Which Bhc FDD item discusses MF Development Fee for Master Franchise BHC Restaurants?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
or formation; and
- (ii) it has the necessary consents, approvals, licenses and/or permits to carry out the business activities contemplated by this Agreement.
4. INITIAL AND ON-GOING PAYMENTS BY MASTER FRANCHISEE
4.1 MF Development Fee and Licensing Fee for BHC Restaurants.
When Master Franchisee signs this Agreement, Master Franchisee must pay Franchisor the sum of USD Forty Thousand Dollars (USD $40,000) multiplied by the number single unit BHC Restaurant as a "MF Development Fee" for Franchisor granting Master Franchisee the exclusive right to open the number of BHC Restaurants specified in the Development Schedule. The MF Development Fee is computed by multiplying the number of BHC Restaurants by the Initial Franchisee Fee for a single unit BHC Restaurant of USD Forty-Thousand Dollars ($40,000). The MF Development Fee is not refundable. The MF Development Fee (and all other payments to Franchisor for goods or services received from Franchisor before Master Franchised BHC Restaurant
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Item 23, section 4.1 discusses the MF Development Fee and Licensing Fee for BHC Restaurants. As a Master Franchisee, upon signing the agreement, you must pay Bhc a "MF Development Fee." This fee is calculated by multiplying USD $40,000 by the number of single-unit BHC Restaurants you are granted the exclusive right to open, as specified in the Development Schedule.
For example, if the Development Schedule requires you to open 5 BHC Restaurants, the MF Development Fee would be USD $200,000 (5 x USD $40,000). This fee compensates Bhc for granting you the exclusive right to develop BHC restaurants in the designated area. The FDD clearly states that the MF Development Fee is non-refundable and is fully earned by Bhc upon payment.
The MF Development Fee, along with any other payments for goods or services received from Bhc before the Master Franchised BHC Restaurant opens, is due in full when you sign the agreement. Acceptable forms of payment are cashier's check, money order, or wire transfer. This upfront payment is a significant investment and should be carefully considered, as it is non-refundable even if the restaurants are not ultimately opened.