If an Affiliate Franchisee remodels an existing facility for a Bhc Restaurant, will the remodeling costs likely be lower?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ent and do not include tenant improvement allowances, if any. If the Affiliate Franchisee remodels an existing facility, we expect the Affiliate Franchisee's remodeling costs to be lower depending on the condition of the premises. If the Affiliate Franchisee chooses to purchase the land or building, the Affiliate Franchisee will incur substantial additional costs and expenses, which we cannot meaningfully estimate.
- (3) Leasehold improvement / Remodeling. Leasehold improvement / remodeling costs, including floor coverings, wall treatments, counters, ceilings, painting, window coverings, electrical, carpentry, and similar work, and contractor's fees depend on the site's condition, location, and size; the demand for the site among prospective lessees; the site's previous use; the build-out required to conform the site for the Affiliate Franchisee's Franchised BHC Restaurant; and any leasehold improvement or other allowances the landlord grants. The lower figure assumes that the Affiliate Franchisee has a unique real estate model; the higher figure assumes a high square footage model. The estimates included in the table above reflect the average deduction provided by landlords for tenant improvements and other allowances.
Source: Item 7 — Estimated Initial Investment: (FDD pages 18–25)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if an Affiliate Franchisee chooses to remodel an existing facility for their Bhc restaurant, the remodeling costs are expected to be lower than building new. However, this is contingent on the condition of the premises. The FDD also states that costs may vary considerably depending on factors such as material and labor costs in the Affiliate Franchisee's area.
Leasehold improvement and remodeling costs include expenses for floor coverings, wall treatments, counters, ceilings, painting, window coverings, electrical work, carpentry, and contractor's fees. These costs are influenced by the site's condition, location, size, demand among prospective lessees, previous use, the build-out required to conform the site for the Bhc Restaurant, and any leasehold improvement or other allowances granted by the landlord.
Bhc specifies that the Affiliate Franchisee must employ a leasehold improvement company, architect, kitchen designer, interior designer, and signage company reasonably acceptable to Bhc to complete, adapt, or modify the sample plans and specifications for the Franchised Bhc Restaurant. The FDD notes that the estimates provided are for new leasehold improvements and do not include tenant improvement allowances, if any. The lower cost estimate assumes the Affiliate Franchisee has a unique real estate model, while the higher figure assumes a high square footage model.