What is the maximum Initial Franchise Fee for each Bhc Restaurant to be opened under the MFA?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
is Item.
Item 5: Initial Fees
You will pay us a non-refundable development/license fee ("MF Development Fee"). The MF Development Fee will vary depending on the development area, the number of BHC Restaurants, and other special circumstances. However, the MF Development Fee for each Restaurant to be opened under the MFA shall not exceed $40,000 for each BHC Restaurant ("Initial Franchise Fee"). Upon signing the MFA, you pay a lump sum, non-refundable MF Development Fee for the total number of BHC Restaurants to be opened under the MFA. The MF Development Fee is non-refundable under any circumstances, even if you fail to open a BHC Restaurant.
In addition, the Initial Deposit for a Master Franchise Business is $20,000 for each BHC Restaurant in your Development Schedule ("Initial Deposit"). The Deposit is due and payable in full when you sign the MFA. The purpose of the Deposit is to secure against non-payment of your obligations under the MFA, and we reserve the right to use the Deposit to compensate ourselves for certain damages and expenses during the term of the MFA, and you must replenish the Deposit to its original amount if we make any deductions. Upon the expiration or termination of the MFA, we will return to you the remaining amount of the Initial Deposit, if any, without interest, after offsetting any sums owed you owe t
Source: Item 5 — Initial Fees (FDD pages 11–12)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the maximum Initial Franchise Fee for each Bhc Restaurant to be opened under a Master Franchise Agreement (MFA) is $40,000. This fee is part of the MF Development Fee, which varies depending on the development area, the number of Bhc Restaurants, and other special circumstances.
This Initial Franchise Fee is non-refundable and is paid as a lump sum upon signing the MFA for the total number of restaurants to be opened under the agreement. Even if the franchisee fails to open a Bhc Restaurant, the MF Development Fee will not be refunded.
In addition to the Initial Franchise Fee, there is also an Initial Deposit of $20,000 for each Bhc Restaurant in the Development Schedule. This deposit is also due when signing the MFA and serves as security against non-payment of obligations. Bhc has the right to use the deposit to cover damages and expenses during the term of the MFA, and the franchisee must replenish the deposit if any deductions are made. Any remaining amount of the Initial Deposit will be returned without interest upon expiration or termination of the MFA, after offsetting any sums owed to Bhc.