When is the MF Development Fee for a Bhc franchise due?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
licenses and/or permits to carry out the business activities contemplated by this Agreement.
4. INITIAL AND ON-GOING PAYMENTS BY MASTER FRANCHISEE
4.1 MF Development Fee and Licensing Fee for BHC Restaurants.
When Master Franchisee signs this Agreement, Master Franchisee must pay Franchisor the sum of USD Forty Thousand Dollars (USD $40,000) multiplied by the number single unit BHC Restaurant as a "MF Development Fee" for Franchisor granting Master Franchisee the exclusive right to open the number of BHC Restaurants specified in the Development Schedule. The MF Development Fee is computed by multiplying the number of BHC Restaurants by the Initial Franchisee Fee for a single unit BHC Restaurant of USD Forty-Thousand Dollars ($40,000). The MF Development Fee is not refundable. The MF Development Fee (and all other payments to Franchisor for goods or services received from Franchisor before Master Franchised BHC Restaurant
Source: Item 5 — Initial Fees (FDD pages 11–12)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the MF Development Fee is due when the Master Franchisee signs the Franchise Agreement. The fee, which is not refundable, must be paid in full via cashier's check, money order, or wire transfer. This fee compensates Bhc for granting the Master Franchisee the exclusive right to open a specified number of Bhc restaurants within a defined development schedule.
The MF Development Fee is calculated by multiplying the number of Bhc restaurants to be opened by $40,000, which is the Initial Franchise Fee for a single unit Bhc restaurant. For example, if a Master Franchisee is granted the right to open five restaurants, the MF Development Fee would be $200,000. This fee is fully earned by Bhc upon payment.
Prospective franchisees should understand that this substantial, non-refundable payment is required upfront. Even if the franchisee fails to open a Bhc restaurant, the MF Development Fee will not be refunded. This policy highlights the importance of careful planning and due diligence before entering into a Master Franchise Agreement with Bhc.