When is the MF Development Fee due for a Bhc Master Franchise, and is it refundable?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 7 — Estimated Initial Investment: (FDD pages 18–25)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the MF Development Fee is due upon signing the Master Franchise Agreement (MFA). This fee is a lump sum payment for each Master Franchised Bhc Restaurant to be opened under the MFA.
Importantly, the MF Development Fee is explicitly stated as non-refundable under any circumstances. This means that even if the franchisee fails to open a Master Franchised Bhc Restaurant, the fee will not be returned. This policy is a significant risk for potential franchisees, as failure to execute the development plan results in a complete loss of the development fees paid.
Prospective franchisees should carefully consider the implications of this non-refundable fee and ensure they have a solid plan and the resources necessary to meet the development obligations outlined in the Master Franchise Agreement. Due diligence, including market research and financial planning, is crucial before committing to the agreement and paying the MF Development Fee to Bhc.