When is the 'Initial Franchise Fee' due for a Bhc restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
RICTIVE PROVISIONS CONTAINED THEREIN AND AS MAY BE OTHERWISE SET FORTH IN THE ORGANIZATIONAL 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 for a single franchised Bhc restaurant is $40,000. This fee, along with any other payments for goods or services received from Bhc before the restaurant opens, is due in full when the Franchise Agreement is signed. Payment must be made via cashier's check, money order, or wire transfer to Bhc. The Initial Franchise Fee is considered fully earned by Bhc upon payment.
This means that a prospective Bhc franchisee must have the full $40,000 available at the time of signing the agreement. This upfront payment is non-refundable and covers the right to operate a Bhc franchise. It's important to note that this fee is separate from other initial investments, such as the Initial Deposit of $20,000, site design review fee of $2,500, and site review fee of $2,000 to $4,000, which are also due at different stages.
Franchisors typically use the initial franchise fee to cover their initial costs of setting up a new franchisee, including training, site selection assistance, and providing the franchise operations manual. The fact that Bhc considers the fee fully earned upon payment suggests that they provide significant support and resources to franchisees from the outset. Prospective franchisees should carefully consider their financial readiness to make this payment and understand what specific services and support they will receive in return for the fee.