When is the initial deposit for a Bhc franchise due, and under what conditions is it refundable?
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 |
Source: Item 7 — Estimated Initial Investment: (FDD pages 18–25)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, an initial deposit of $20,000 is due at the signing of the Master Franchise Agreement (MFA). This deposit is refundable, but only at the expiration of the Franchise Agreement.
This means that a prospective Bhc franchisee must pay the $20,000 deposit upfront when committing to the franchise. However, the franchisee will not be able to get this money back until the entire franchise agreement expires, which could be many years later. This is different from an initial franchise fee, which is typically non-refundable.
It is important for potential Bhc franchisees to understand the terms and conditions under which the initial deposit is refundable. Franchisees should factor this long-term lock-up of funds into their financial planning and consider the implications of not having access to this capital for an extended period. They should also clarify with Bhc what specific events or conditions would lead to forfeiture of the deposit, even at the end of the agreement.