What is the initial franchise fee for a single 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 AND ON-GOING PAYMENTS BY FRANCHISEE
4.1 Initial Franchise Fee.
- (a) The "Initial Franchise Fee" for a single Franchised BHC Restaurant is $40,000.
- (b) The Initial Franchise Fee (and all other payments to Franchisor for goods or services received from Franchisor before Franchisee's Franchised BHC Restaurant opens for business) is due and payable in full, by cashier's check or money order or wire transfer to Franchisor. The Initial Franchise Fee is fully earned by Franchisor when paid.
4.2 Initial Deposit.
The "Initial Deposit" for a single Franchised BHC Restaurant is $20,000. The Initial Deposit is due and payable in full, by cashier's check or mon
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 BHC restaurant is $40,000. This fee is due when the Franchise Agreement is signed and must be paid via cashier's check, money order, or wire transfer to Bhc.
The initial franchise fee is considered fully earned by Bhc once it is paid. This means that the franchisee will not receive a refund of this fee under any circumstances. This is a common practice in franchising, as the initial fee compensates the franchisor for the costs associated with granting the franchise, including training, site selection assistance, and brand development.
In addition to the initial franchise fee, the franchisee must also pay an initial deposit of $20,000. Unlike the initial franchise fee, this deposit is potentially refundable within 60 days of the expiration or termination of the Franchise Agreement, provided the franchisee has fully complied with all obligations outlined in the agreement. This deposit serves as security against any non-payment or breach of contract by the franchisee.