What fees must the Master Franchisee pay Bhc for site design and review?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
nt to the location of the Franchised BHC Restaurant is not a guarantee that a BHC business can be successfully operated there or anywhere else.
- (d) Franchisor will provide Master Franchisee with a sample prototype layout for the Franchised BHC Restaurant. Franchisor will provide Master Franchisee a floor plan and Master Franchisee must pay Franchisor for all costs and expenses that Franchisor incurs in providing the site design review of $2,500 ("Site Design Review Fee") and site review fee of $2,000 to $4,000 ("Site Review Fee"). At Master Franchisee's sole expense, Master Franchisee must employ
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee is required to pay certain fees to Bhc for site design and review services. Specifically, the Master Franchisee must cover the costs and expenses Bhc incurs for providing a site design review, which amounts to $2,500. This is referred to as the "Site Design Review Fee." Additionally, the Master Franchisee must pay a separate site review fee, which ranges from $2,000 to $4,000. This is referred to as the "Site Review Fee."
These fees are in addition to the Master Franchisee's responsibility to employ and pay for their own architects, designers, and engineers, who must be reasonably acceptable to Bhc, to complete, adapt, or modify the sample plans and specifications for the BHC Restaurant. The Master Franchisee is also responsible for all licensing-related matters. The architect must submit a complete set of final plans and specifications to Bhc before commencing any leasehold improvements.
Bhc retains complete control over the design of the Franchised BHC Restaurant, and the Master Franchisee cannot modify the design or choose third-party designers without Bhc's express written consent. Furthermore, the Master Franchisee cannot begin leasehold improvements until Bhc provides written consent to the final plans, specifications, and contractors. Bhc will consult with the Master Franchisee on leasehold improvements to the extent Bhc deems necessary.