What is the initial franchise fee for a first affiliate franchised Bhc restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
INITIAL INVESTMENT: (Master Franchise Business)**
| Type of Expenditure (1) | Amount** | Method of Payment | When Due | To Whom Payment Is to Be Made |
|---|---|---|---|---|
| MF Development Fee | $200,000 | Lump sum; | At signing of | Franchisor |
| (2) | non-refundable | MFA | ||
| Initial Deposit (3) | $100,000 | Lump sum; refundable at expiration of MFA | At signing of MFA | Franchisor |
| Office Equipment and (4) Supplies | $0 to $5,000 | As Incurred | When Incurred | Various Suppliers |
| Business Office (5) | $0 to $15,000 | As Incurred | As Incurred | Lessor and Various Suppliers |
| Storage and Product Delivery Expenses (6) | $0 to $5,000 | As Incurred | As Incurred | Various Suppliers |
| Initial Training Fee (7) | $8,000 | Lump sum; non-refundable | As Incurred | Franchisor |
| Opening Inventory and Supplies, Uniforms for First Affiliate Franchised BHC Restaurant (8) | $0 to $20,000 | Lump Sum | Prior to the opening of the first Affiliate Franchised BHC Restaurant by your Franchisee | Franchisor and Approved Suppliers |
| Insurance (9) | $7,000 to $10,000 | As Incurred | As Incurred | Insurance Provider |
| Utility Deposit, Business | $5,000 | As Incurred | As Incurred | Government |
| licenses | to $10,000 | and agencies | ||
| Type of Expenditure (1) | Amount** | Method of Payment | When Due | To Whom Payment Is to Be Made |
| ------------------------------------- | --------------------------- | ---------------------- | ------------- | ---------------------------------------------- |
| Professional Fees | $5,000 to $10,000 | As Incurred | As Incurred | Attorneys and accountants |
| Additional Funds – 3 months (10) | $60,000 to $150,000 | As Incurred | As Incurred | Employees and Approved Supplier |
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 for the first affiliate franchised Bhc restaurant is not explicitly stated as a separate fee within the provided table outlining the estimated initial investment for the first Affiliate Franchised BHC Restaurant. However, the document mentions an MF Development Fee of $200,000, which is a lump sum payment due at the signing of the MFA (Master Franchise Agreement) and is non-refundable. The document also states that the MF Development Fee for each BHC Restaurant to be opened under the MFA shall not exceed then current Initial Franchise Fee.
Given that the Master Franchisee must establish and operate at least one Affiliate Franchised BHC Restaurant within the Development Area before granting subfranchises, the costs associated with opening the first affiliate restaurant are detailed in a separate table. This table includes various expenses such as opening inventory, supplies, uniforms, insurance, utility deposits, and additional funds for the first three months of operation. However, it does not list a specific 'initial franchise fee' for the affiliate restaurant.
Therefore, while there isn't a directly stated initial franchise fee for the first affiliate restaurant, the MF Development Fee paid by the Master Franchisee could be interpreted as covering the right to establish this initial restaurant. Prospective franchisees should clarify with Bhc whether a separate initial franchise fee applies to the first affiliate restaurant, or if the MF Development Fee covers this cost. They should also inquire about any other fees or payments required to establish and operate the first affiliate franchised Bhc restaurant, ensuring a clear understanding of the total investment required.