What is the inspection fee for the Bhc Franchisor's site visits?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
t that Franchisor deems necessary. Master Franchisee's failure to promptly commence and diligently complete the design, leasehold improvement, inventorying, equipping, and opening of the Franchised BHC Restaurant will be a material breach of this Agreement. Before the Franchised BHC Restaurant opens to retail customers and before final inspections by any governmental agency, Franchisor will visit the site of Franchised BHC Restaurant for three (3) on-site visits and complete a final "walk through" inspection of the BHC Restaurant and issue a written consent to open. Any deficiencies noted by Franchisor as a result of this inspection must be corrected by Master Franchisee within 30 days or this Agreement may be terminated without any liability to Franchisor. Master Franchisee shall be respon
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, before a Bhc restaurant opens to retail customers and before final inspections by any governmental agency, Bhc will conduct three on-site visits and a final "walk through" inspection. The franchisee or master franchisee is responsible for a $600 inspection fee for these visits. This fee covers the costs associated with the Franchisor's personnel, including accommodation, transportation, meals, and daily allowances. This inspection fee applies up to three times per franchised Bhc restaurant.
This means that a Bhc franchisee must budget for this $600 inspection fee, in addition to covering the travel and accommodation expenses for Bhc's personnel for up to three visits. This is a cost that the franchisee must bear before the restaurant can open, and it is in addition to other fees such as the site design review fee of $2,500 and a site review fee of $2,000 to $4,000.
It is important for prospective Bhc franchisees to factor in these pre-opening inspection costs when evaluating the overall investment required to start the franchise. Understanding these fees and budgeting for them appropriately can help ensure a smoother launch for the new Bhc restaurant. The franchisee should also be aware that any deficiencies noted during the inspection must be corrected within 30 days, or the franchise agreement may be terminated without liability to Bhc.