When is the initial franchise fee due for a Bhc franchise?
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 signin |
Source: Item 7 — Estimated Initial Investment: (FDD pages 18–25)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the initial franchise fee of $40,000 is due at the signing of the Master Franchise Agreement (MFA). This fee is a lump sum payment and is non-refundable.
This means that a prospective Bhc franchisee must pay the entire $40,000 upfront when they formally agree to the terms of the franchise. The non-refundable nature of this fee is a critical point for potential franchisees to consider. Even if the franchisee later decides not to proceed with opening a location, or is unable to do so, the initial franchise fee will not be returned.
In addition to the initial franchise fee, the FDD outlines other fees due at signing, such as the initial deposit of $20,000, which is refundable at the expiration of the Franchise Agreement. Understanding the timing and conditions of all initial fees is essential for budgeting and financial planning when considering a Bhc franchise.