What management administration fee does Bhc charge if they place an interim manager in the franchised restaurant after a franchisee's death?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
as soon as practicable (but not more than 270 days) after the date of death in accordance with such person's will or, if such person dies without a will, in accordance with laws of intestacy governing the distribution of such person's estate, provided that adequate provision is made for the management of the Franchised Business. If Franchisor determines (i) there is no imminent sale to a qualified successor or (ii) there is no heir or other Principal Equity Operator capable of operating the Franchise, Franchisor may
(but is not obligated to) immediately commence operating the BHC Restaurant on Master Franchisee's behalf for a period of up to 90 days, renewable as Franchisor deems necessary for up to one year and Franchisor will periodically discuss the s
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, in the event of the death or legal incapacity of an individual franchisee or a majority equity owner, Bhc has the option to commence operating the franchised restaurant. This is applicable if there is no imminent sale to a qualified successor or if there is no heir or other principal equity operator capable of running the franchise.
If Bhc decides to operate the restaurant, they can place an interim manager in the franchised BHC restaurant. In this case, the franchisee's estate is responsible for covering the manager's salary, transportation, lodging, and related living expenses.
In addition to these costs, the franchisee's estate must also pay Bhc a management administration fee of 15%. This fee is calculated on top of the other expenses associated with the interim manager's placement and operation of the restaurant. This arrangement can last for up to 90 days, with possible renewals as Bhc deems necessary, up to one year, during which Bhc will discuss the status with the heirs.