Who are the fees and costs payable to when establishing a Bhc restaurant under the MFA?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
L INVESTMENT: First Affiliate Franchised BHC Restaurant**
| Type of | Amount** | Method of | When Due | To Whom Payment |
|---|---|---|---|---|
| Expenditure | Payment | Is to | ||
| (1) | Be Made | |||
| Initial Franchise | $40,000 | Lump sum; | At signing of MFA | Franchisor |
| Fee (2) | non-refundable | |||
| Initial Deposit | $20,000 | Lump sum; refundable at expiration of Franchise Agreement | At signing of MFA. | Franchisor |
| Type of Expenditure (1) | Amount** | Method of Payment | When Due | To Whom Payment Is to Be Made |
| ---------------------------------------------------------- | ----------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------- |
| Inspection Fee | $600 | Immediately upon our demand after leasehold improvement | We will make three (3) on-site visits to the Master Franchised BHC Restaurant before opening for inspection, which include a complete a final "walk through" inspection of the Master Franchised BHC Restaurant without you incurring additional fees. Any deficiencies noted by us because of our inspection must be corrected by you within 30 days or this Agreement may be terminated without any liability to us. If we provide any additional on-site visits after the third (3rd) time, you must reimburse us for the Actual Costs of each individual on-site visit. | Franchisor |
| Grand Opening |
Source: Item 7 — Estimated Initial Investment: (FDD pages 18–25)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, when establishing a Bhc restaurant under the Master Franchise Agreement (MFA), payments are directed to various entities. The document indicates that some payments are made to Bhc itself, specifically for training fees and expenses. Additionally, certain fees and costs are payable to the franchisee or their affiliates. The remaining costs and fees are allocated to third-party suppliers, government agencies, or other service providers.
Specifically, the initial franchise fee of $40,000 and an initial deposit of $20,000 are paid to Bhc at the signing of the MFA. An inspection fee of $600 is payable to Bhc immediately upon demand after leasehold improvement. Furthermore, during the first 60 days, grand opening advertising expenses ranging from $10,000 to $20,000 are paid to advertising.
Prospective franchisees should note that the specific amounts and recipients can vary based on factors such as location and individual agreements. It is important to clarify with Bhc which fees are refundable and to understand the terms and conditions associated with payments to third parties. Understanding these payment structures is crucial for budgeting and financial planning when establishing a Bhc franchise.