Are the fees payable to Bhc refundable?

According to Bhc's 2025 Franchise Disclosure Document, the fees payable to Bhc are generally non-refundable. Specifically, Item 6 notes that all fees are payable to Bhc and are non-refundable. However, Bhc retains the discretion to reduce fees in individual cases. This means that while franchisees should generally expect that fees paid to Bhc will not be returned, there may be circumstances where Bhc decides to offer a reduction.

This policy is fairly standard in the franchise industry, as initial fees and ongoing payments are used to support the franchisor's services and brand development. The non-refundable nature of fees underscores the importance of careful due diligence before investing in a Bhc franchise. Prospective franchisees should fully understand all fee obligations and assess their financial capacity to meet these requirements.

While payments to Bhc are non-refundable, the FDD also states that Bhc cannot represent whether amounts paid to third parties are refundable. This means franchisees need to investigate the refund policies of any third-party vendors they work with, such as those providing insurance. Franchisees should clarify the refund policies of these third-party vendors before making any payments to them.

In summary, franchisees should operate under the assumption that all fees paid directly to Bhc are non-refundable, while also understanding that Bhc retains the right to reduce fees in certain situations. Franchisees should also independently verify the refund policies of any third-party vendors they are required to use.