When is the initial franchise fee for Bhc due?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ZATIONAL DOCUMENTS AND OPERATING AGREEMENTS OF THIS IITY."
- (c) If Franchisee is an entity, Franchisee warrants that:
- (i) it is duly organized or formed and validly existing in good standing under the laws of the jurisdiction of its incorporation or formation; and
- (ii) it has the necessary consents, approvals, licenses and/or permits to carry out the business activities contemplated by this Agreement.
**4. INITIAL A
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the initial franchise fee of $40,000 for a single franchised Bhc restaurant is due when the franchisee signs the franchise agreement. The payment must be made in full via cashier's check, money order, or wire transfer to Bhc. Once paid, the initial franchise fee is considered fully earned by Bhc.
This means a prospective Bhc franchisee must have the full $40,000 available at the time of signing the agreement to secure the rights to open a franchise. This upfront payment is non-refundable and compensates Bhc for granting the franchise and providing initial support.
In addition to the initial franchise fee, the franchisee must also pay an initial deposit of $20,000, also due when signing the agreement. This deposit is to secure against non-payment of the franchisee's obligations and is potentially refundable within 60 days of the agreement's expiration or termination if the franchisee has fully complied with the agreement.