How many Bhc restaurants must a Master Franchisee commit to opening to become a Master Franchisee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
irect or indirect financing.
- (2) MF Development Fee. This amount reflects the total estimated initial investment needed to become a Master Franchisee to open a minimum of five (5). The MF Development Fee will vary depending on the Development Area, the number of Master Franchised BHC Restaurants, and other special circumstances provided the MF Development Fee for each BHC Restaurants to be opened under the MFA shall not exceed then current Initial Franchise Fee. Upon signing the MFA, you pay a lump sum, non-refundable MF Development Fee for each Master Franchised BHC Restaurant to be opened under the MFA. The MF Development Fee is non-refundable under any circumstances, even if you fail to open a Master Franchised BHC Restaurant.
- (3) Deposit. As further described in Item 5, you must pay us a Deposit in the amount of $100,000 for five (5) Master Franchised BHC Restaurants. The Deposit will vary depend
Source: Item 7 — Estimated Initial Investment: (FDD pages 18–25)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, to become a Master Franchisee, you must commit to opening a minimum of five Bhc restaurants. This commitment is tied to the Master Franchise Development Fee, which is paid as a lump sum upon signing the Master Franchise Agreement (MFA). The fee covers the rights to develop these restaurants within a specific Development Area.
It's important to note that the Master Franchise Development Fee is non-refundable, even if the franchisee fails to open all five restaurants. The fee can vary depending on the Development Area, the number of restaurants, and other special circumstances. However, the fee for each restaurant cannot exceed the then-current Initial Franchise Fee.
In addition to the development fee, a deposit is required, which is $100,000 for the initial five restaurants. This deposit amount will also vary depending on the number of restaurants included in the agreement. Prospective franchisees should carefully consider these financial obligations and development commitments before entering into a Master Franchise Agreement with Bhc.