What is the MF Development Fee for a Bhc franchise, and is it refundable?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
D INITIAL INVESTMENT: (Master Franchise Business)**
| Type of Expenditure (1) | Amount** | Method of Payment | When Due | To Whom Payment Is to Be Made |
|---|---|---|---|---|
| MF Development Fee | $200,000 | Lump sum; | At signing of | Franchisor |
| (2) | non-refundable | MFA | ||
| Initial Deposit (3) | $100,000 | Lump sum; refundable at |
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 $200,000. This fee is paid in a lump sum when signing the Master Franchise Agreement (MFA). The FDD specifies that the MF Development Fee is non-refundable. This means that under no circumstances will Bhc return this fee, even if the franchisee fails to open a Master Franchised Bhc Restaurant.
This non-refundable nature of the MF Development Fee is a significant factor for potential Bhc master franchisees to consider. It represents a substantial upfront investment that is at risk from the outset. Franchisees should carefully evaluate their ability to meet the development obligations outlined in the Master Franchise Agreement before committing to the franchise.
It is important to note that the MF Development Fee covers the right to open a minimum of five Bhc restaurants. The fee may vary depending on the development area, the number of restaurants, and other special circumstances, but it will not exceed the current Initial Franchise Fee for each restaurant. Prospective franchisees should clarify all terms and conditions related to the MF Development Fee with Bhc before signing the MFA.